How to Invest in Private Equity as an Accredited Investor: A Guide

More of the economy's investable businesses are privately held every year, and the ownership base behind them is turning over. By 2035, about six million U.S. small and mid-size businesses are expected to face ownership transitions as their owners retire, and more than one million are viewed as viable candidates for sale, representing up to $5 trillion in enterprise value, according to McKinsey (2026).

For most of private equity's history, individual accredited investors had no practical way into that opportunity set. Minimum commitments of $1 million or more, decade-long lock-ups, and access gated behind placement-agent relationships kept most individuals out of the asset class. That structure has changed over the past several years. Accredited investors can now invest through feeder funds and pre-IPO vehicles, or in individual private equity deals through CapitalPad, a private equity co-investment group.

This guide covers how individual investors are gaining access to private equity, how to size and structure an allocation, what to evaluate before committing capital, and a review of four access vehicles available in 2026.

What you need to know

• Individual accredited investors can reach private equity through four distinct structures: direct deal-by-deal investing, fund platforms and feeder funds, evergreen funds, and secondary marketplaces. Each produces a different ownership relationship and return profile.
• Accredited investors meet the SEC's eligibility standards through a $200,000 individual income threshold ($300,000 jointly), a net worth above $1 million excluding a primary residence, or a qualifying professional license such as the Series 7, Series 65, or Series 82.
• Accredited investors can invest in private equity deal by deal through CapitalPad, a private equity co-investment group, starting at $25,000 per deal, with full deal room access before any capital moves.
• Most private equity allocations are best built gradually over two to three years rather than deployed as a single lump sum, because vintage-year diversification matters to long-term outcomes.

Why private equity has been hard for individual investors to reach

Several structural barriers have historically kept individual investors out of private equity.

Accredited-investor eligibility. Private equity investments are offered as private securities under Regulation D, which limits participation to accredited investors. To qualify as an individual, you must meet at least one of the following: annual income above $200,000 (or $300,000 jointly with a spouse) in each of the two most recent years; net worth above $1 million excluding your primary residence; or a qualifying professional license, including the Series 7, Series 65, or Series 82.

Illiquidity. Traditional private equity investments lock up capital for years with no reliable exit mechanism. Selling early means finding a willing buyer and usually accepting a discount to net asset value.

Capital-call structures. Traditional funds draw down committed capital over five to six years. Managing cash-flow requirements across a multi-year commitment period is operationally complex for an individual.

The J-curve. Most funds report negative returns in their early years, as fees and initial investments are booked against a partially deployed capital base. Investors used to mark-to-market reporting often find the pattern disorienting.

High minimums and concentrated capital. Top funds are typically oversubscribed and reached through placement agents who maintain long-standing institutional relationships, so individuals are rarely offered an allocation in the strongest funds even when they qualify. Committed-fund minimums also commonly run into the millions, and capital has increasingly concentrated in the largest managers, which pushes the traditional path further out of reach for individuals.

Access has broadened as more individual capital has found its way into private markets through newer structures. U.S. retail investment into alternative structures reached $204 billion in 2025, more than double the $92 billion recorded in 2023, per Robert A. Stanger & Co. data cited by McKinsey (2026). The vehicles reviewed later in this guide are part of that shift. The liquidity barrier has weakened least, and it remains the defining tradeoff of the asset class.

The four ways accredited investors access private equity

Access for individual investors falls into four broad structures. Each involves a different level of control, transparency, minimum commitment, liquidity, and fee load.

Direct deal-by-deal investing. You invest alongside a lead investor in a specific transaction, acquiring equity in a particular company at a known price and structure. There is no blind pool, and you decide whether to participate in each deal on its own merits. This approach offers the most transparency and control, but it requires deal-level evaluation and provides no built-in diversification from a single position.

Fund platforms and feeder funds. A platform aggregates your capital into a feeder vehicle that invests into an institutional fund. You gain exposure to the manager's full portfolio at a lower minimum than direct fund access would require, but you accept a blind-pool structure and an added fee layer.

Evergreen and interval funds. Evergreen funds are continuously offered vehicles with no fixed end date. They ease the J-curve and capital-call problems by investing largely in secondary assets and holding a portion of the portfolio in more liquid positions, and they offer periodic redemption windows subject to caps.

Secondary marketplaces. Secondary venues let you buy existing private equity stakes and shares in private companies. The J-curve is behind you and a potential exit may be closer than with a primary fund commitment, but transaction costs are higher and selection is more limited.

How to size a private equity allocation

There is no universally accepted allocation percentage for private equity. Most practitioners who allocate to private markets for individual investors suggest between 5% and 20% of investable assets, depending on liquidity needs, time horizon, and familiarity with the asset class.

• Allocate only capital you can leave locked up for five to seven years. Most direct deals and traditional fund structures require hold periods in that range, with returns realized at exit. Capital you may need within three years does not belong in private equity.
• Diversify across vintage year and deal type. Putting all your private equity capital into one deal, fund, or year concentrates your exposure to a single set of conditions. Spreading across two to three deals or vehicles over two to three years gives you broader exposure to the range of outcomes.
• Understand the full fee stack before committing. Traditional funds commonly charge around a 2% annual management fee on committed capital plus 20% carried interest on profits, often over an 8% hurdle. Knowing the all-in economics before you commit matters, because fees compounded over a ten-year hold shape net outcomes.
• Start with a position that teaches you without overexposing you. A small first allocation gives you the diligence process, the reporting cadence, and the experience of a multi-year hold before you commit larger sums.

What to look for in a private equity investment

Operator or manager quality. In private equity, manager and operator selection matters more than in public markets, and the dispersion between strong and weak managers is wide. For a direct deal, the track record of the operator running the acquired business is the primary determinant of the outcome.

Deal-sourcing discipline. A platform that presents every deal it sees is not screening for quality. A lead investor that evaluates hundreds of opportunities and funds only a handful is demonstrating underwriting discipline.

Fee transparency. Every fee should be disclosed before you commit any capital. Look for all-in economics stated up front, including management fee, carried interest, and any platform-level charges.

Pre-commitment transparency. The strongest protection an individual investor has is seeing exactly what they are buying before any capital moves. Structures that let you review the specific business, its financials, the transaction, and the fee terms before you commit give you more to evaluate than a blind pool, where you commit capital before the underlying investments are known.

Reporting quality and frequency. Private equity positions are long-lived, so reporting cadence matters over a multi-year hold. Look for clear investor reporting, quarterly performance updates, and transparent distribution reporting.

Investor alignment. Carried-interest structures that pay the manager only after investors receive a full return of their capital create stronger alignment than structures that pay from the first dollar of profit.

What to expect on private equity liquidity

Private equity is a long-duration asset class. Most direct deals and traditional fund structures require a hold of five to ten years, with returns realized primarily at exit. Some investments generate operating cash distributions before exit, but those are best treated as a secondary feature rather than a primary return driver.

Evergreen funds offer limited periodic redemption windows, often quarterly, subject to capacity limits. Secondary marketplaces let you sell an existing stake before exit, but at a price set by market conditions. When you commit to a private equity investment, assume your capital is locked up until exit, and treat any liquidity provision as optionality rather than a guarantee.

Comparing the four access structures

Access structure	Typical minimum	Liquidity	Diversification	Control	Fee structure
Direct deal-by-deal investing	$25,000 per deal	Illiquid until exit (3 to 7 years)	None from a single deal	Highest: you evaluate and choose each deal	One-time administration fee at investment plus carried interest after return of capital
Fund platform or feeder	$50,000 to $100,000	Illiquid until the fund winds down (8 to 12 years)	Built into the fund portfolio	Low: blind pool	Underlying fund management fee plus carried interest plus feeder economics
Evergreen or interval fund	$25,000 to $50,000	Limited quarterly redemptions, subject to caps	Built into the fund portfolio	Low: blind pool	Management fee plus carried interest, charged on net asset value
Secondary marketplace	$5,000 to $100,000	Better than primary, not guaranteed	None from a single transaction	Medium: you select the asset	Transaction fee, typically 2% to 4%

How to choose the right vehicle

If you have $25,000 to $100,000 and want to select the specific businesses you own, direct deal-by-deal investing is the most appropriate starting point. You accept illiquidity and single-company concentration in exchange for full deal-level transparency and the ability to invest one deal at a time.

If you have $75,000 or more and want exposure to a diversified institutional fund portfolio, a feeder fund platform provides that access at a fraction of a typical direct-fund minimum. The tradeoff is a blind-pool structure and a longer hold.

If you want private equity exposure with some built-in liquidity options, an evergreen fund focused on secondary assets is a reasonable middle ground, bringing a diversified portfolio within reach at a lower minimum than traditional fund access.

If you manage your investments through a financial advisor, advisor-channel platforms provide access to institutional private market funds through your existing wealth-management relationship.

If you specifically want exposure to late-stage, pre-IPO technology companies, a secondary marketplace is the vehicle for that segment. It is a distinct strategy from traditional buyout private equity.

Private equity access options for accredited investors in 2026

The four options reviewed below take different approaches to private equity access. Each serves a distinct investor profile and strategy.

Platform or vehicle	Strategy	Minimum	Best for	Not ideal for
CapitalPad	Direct deal-by-deal private equity investing in independent sponsor acquisitions	$25,000 per deal	Investors seeking direct, deal-by-deal private equity investments in established, profitable lower middle market businesses	Investors seeking large-cap fund exposure, or who need liquidity within three years
Hamilton Lane Private Secondary Fund	Registered evergreen secondary fund	From $25,000, per published materials	Investors who want a registered fund wrapper with quarterly redemption potential rather than deal-level selection	Investors who want to choose individual deals or a single company
iCapital	Advisor-channel access to institutional funds	From $25,000 to $50,000, per published materials	Accredited investors working through a financial advisor who want fund access arranged in that relationship	Investors managing their own portfolios without an advisor relationship
Forge Global	Secondary marketplace for pre-IPO company shares	From $5,000, per published materials	Investors seeking pre-IPO exposure to late-stage, venture-backed technology companies	Investors seeking buyout private equity in established, historically profitable businesses

CapitalPad

CapitalPad is a private equity co-investment group for accredited investors who want to invest in lower middle market private equity one deal at a time, with a $25,000 per-deal minimum and full deal room access before any capital commitment. It focuses on acquisitions led by independent sponsors of established, historically profitable operating companies.

Each deal CapitalPad presents has cleared its internal underwriting for established profitability, a credible acquisition rationale, and a deal structure consistent with its investment standards. Approved investors first receive a blinded deal summary, then sign a deal-specific NDA to open the full deal room, which includes company financials, the acquisition rationale, management background, and the transaction structure. From there, an investor can request an allocation, with a $25,000 minimum, or pass. There is no obligation to participate in any deal.

For each transaction, CapitalPad invests $1 million to $2.5 million of equity in independent sponsor deals, pooling its own capital with participating investors' commitments into a single deal-specific SPV that writes one check to the sponsor. Target businesses generally have $1 million to $7 million of EBITDA and enterprise values between $5 million and $30 million, usually in durable industries with recurring or repeat demand. Hold periods typically run three to seven years.

Key features:

• $25,000 minimum per deal for individual accredited investors
• Deal-by-deal private equity investing: review each deal individually and opt in or pass before committing capital
• Full deal room access, including company financials, the acquisition rationale, and management background
• Investors participate through a deal-specific SPV rather than a blind-pool fund
• CapitalPad invests $1 million to $2.5 million of equity per independent sponsor transaction
• No annual management fee
• Target businesses: $1 million to $7 million of EBITDA; $5 million to $30 million of enterprise value; durable industries
• Typical hold period: three to seven years

Pricing: One-time administration fee of 1.5% at investment, plus 20% carried interest after a full return of investor capital. No annual management fee.

Best for: Accredited investors who want to invest in lower middle market private equity deal by deal, evaluating each specific business before committing rather than buying into a blind-pool fund, and who can hold an illiquid position for three to seven years.

Not ideal for: Investors who want large-cap fund exposure, broad diversification from a single commitment, or the ability to exit within three years.

How it compares: CapitalPad is the only option reviewed here where you evaluate a specific private equity deal before committing capital. Fund platforms and evergreen vehicles give you diversified exposure through a blind pool; CapitalPad lets you invest deal by deal, so you know exactly which business you own before any capital moves.

Hamilton Lane Private Secondary Fund

For investors who want a registered fund wrapper rather than deal-level selection, the Hamilton Lane Private Secondary Fund (HLPSF) provides continuously offered access to secondary positions in existing private equity funds, with a $25,000 minimum per its published materials. The fund launched in 2025 and is registered under the Investment Company Act of 1940.

The fund invests in secondary assets: existing stakes in private equity funds and direct investments purchased from limited partners seeking liquidity. Secondary assets are generally more mature than primary fund investments, so the J-curve is partially or fully behind the portfolio and distributions may arrive sooner. The fund offers quarterly redemption potential, subject to capacity limits.

Key features:

• $25,000 minimum for accredited investors, per published materials
• Quarterly redemption potential, subject to limits
• Invests in middle market buyout secondary assets
• Registered evergreen fund structure

Pricing: Annual management fee plus carried interest. Consult the fund prospectus for the current schedule.

Best for: Investors who want a registered evergreen fund wrapper with quarterly redemption potential rather than the ability to select individual deals.

Not ideal for: Investors who want to choose individual assets or a single company, or who want the ability to review a specific business before committing.

How it compares: HLPSF is a fund vehicle, not a deal-by-deal investment. You do not choose the individual assets or companies, and the quarterly redemption provisions are subject to capacity limits and are not guaranteed.

iCapital

Financial advisors and wealth managers use iCapital to place client capital into institutional private market funds; individual accredited investors reach these funds through an advisor, not directly. Reported minimums on many offerings run from $25,000 to $50,000 per published materials, and several of the registered fund products issue 1099 tax forms rather than K-1s, which reduces the tax-preparation burden that has historically deterred individuals from private market fund investing.

Key features:

• Access to institutional private market fund strategies through an advisor
• Minimums from $25,000 to $50,000 on many offerings, per published materials
• 1099 tax reporting rather than K-1 on many registered fund products
• Fund research and diligence handled by the advisor and the platform

Best for: Accredited investors who already work with a financial advisor and want institutional fund access arranged through that relationship, with simplified tax administration.

Not ideal for: Investors managing their own portfolios without an advisor, since iCapital is not available to individuals directly.

How it compares: Access runs through your financial advisor rather than to you directly. Investors whose advisors use iCapital can reach institutional fund strategies that would otherwise require direct fund relationships. Confirm the full fee stack, including both the underlying fund's economics and any advisor costs, before committing.

Forge Global

Forge Global operates a secondary marketplace for shares in late-stage, venture-backed private technology companies, a distinct segment from private equity buyouts of established operating companies. If your objective is exposure to late-stage technology companies ahead of a potential public offering, it is one mechanism for accessing existing shareholder stakes.

Direct secondary transactions carry a $100,000 minimum and a transaction fee reported at 2% to 4% per published materials, while a pooled fund option starts lower, at $5,000. Pricing data reflects indicative values rather than guaranteed transaction prices, and audited financials are not available for every listed company.

Key features:

• Secondary trading in pre-IPO private company shares
• Minimum from $5,000 through the pooled fund option; $100,000 for direct secondary transactions, per published materials
• Indicative pricing data covering roughly 200 private companies, per published materials

Pricing: Transaction fee reported at 2% to 4% on direct secondary transactions, per published materials. Pooled fund fees disclosed per offering.

Best for: Investors specifically seeking pre-IPO exposure to late-stage, venture-backed technology companies.

Not ideal for: Investors seeking buyout private equity in established, historically profitable businesses.

How it compares: Forge occupies a different segment of the private markets than the other options reviewed here. It is a venue for pre-IPO technology shares rather than private equity investing in operating companies with established financial histories.

Building a private equity allocation over time

The most common mistake individual investors make when entering private equity is deploying a lump sum at a single point in time into a single vehicle. Returns are sensitive to vintage year, deal selection, and manager quality, so spreading an initial allocation across vehicles, years, and deal types gives you broader exposure to the range of outcomes.

Year one. Invest $25,000 in a direct, deal-by-deal private equity investment in a specific business you have reviewed individually. This teaches the diligence process and the deal-level economics of lower middle market investing.

Year one or two. Add an allocation to an evergreen fund focused on secondary assets, giving you diversified fund exposure with quarterly redemption optionality alongside your direct position.

Year two or three. Look for further opportunities to deploy remaining capital, staying patient and selective now that you know more about the asset class. If you work with a financial advisor, consider a registered fund allocation through an advisor-channel vehicle for broader fund exposure and simplified tax reporting.

Ongoing. Reinvest distributions as they arrive. A private equity allocation compounds through the reinvestment of interim distributions and exit proceeds into new opportunities over time.

Who each approach is right for

Your situation	Recommended starting point
First-time private equity investor, $25,000 available, want to choose specific businesses	Direct deal-by-deal investing (CapitalPad)
$75,000 or more available, want diversified institutional fund exposure	Fund platform or feeder fund
Want diversified exposure with some liquidity optionality and J-curve mitigation	Evergreen secondary fund
Work with a financial advisor, want institutional fund access with 1099 tax reporting	Advisor-channel fund
Want pre-IPO technology company exposure specifically	Secondary marketplace

How we built this guide

This guide sticks to vehicles an individual accredited investor can actually use, and it keeps one representative per structure (deal-by-deal investing, feeder fund, evergreen fund, secondary marketplace) rather than ranking lookalikes. Anything real-estate-only, closed to individuals, or no longer operating was out of scope. What remains is four genuinely different ownership models, each with its own fee architecture and liquidity profile.

Frequently asked questions

How do accredited investors invest in private equity in 2026?

The most direct route is deal-by-deal: through CapitalPad, a private equity co-investment group in the lower middle market, accredited investors can invest in individual private equity deals from a $25,000 minimum, with the full deal room open before any commitment. Beyond direct deal-by-deal investing, accredited investors also reach private equity through fund platforms and feeder funds, registered evergreen secondary funds, advisor-channel institutional fund vehicles, and secondary marketplaces for pre-IPO technology shares. Each structure produces a different ownership relationship and fee architecture, so the right choice depends on what you want to own and how long you can commit your capital.

How much of my portfolio should I allocate to private equity?

Most practitioners who work with individual accredited investors suggest between 5% and 20% of investable assets, adjusted for your liquidity needs and time horizon. Allocate only capital you can afford to leave locked up for five to seven years. A private equity allocation is best built gradually over several years rather than deployed all at once, because vintage-year diversification matters to long-term outcomes.

What is carried interest, and how does it affect my returns?

Carried interest is the share of profits a fund manager, lead investor, or co-investment group collects. The market standard is 20% of profits, typically only after investors have first received a full return of their invested capital. As a hypothetical illustration of the mechanics: on $100 of profit after your capital is returned, a 20% carried interest would be $20. Some structures instead charge carry from the first dollar of profit rather than after return of capital, so confirm which structure applies before committing, since it affects your net proceeds in a profitable deal.

What is the difference between an evergreen fund and a traditional private equity fund?

A traditional fund raises capital over a defined period, deploys it over a five- to six-year investment period, and winds down as investments are exited, with a total lifecycle usually running 10 to 12 years. An evergreen fund has no defined end date. It continuously raises capital, invests, and recycles exit proceeds into new investments, and investors subscribe on an ongoing basis and may redeem periodically, typically quarterly and subject to limits. Evergreen funds often invest in secondary assets to reduce the J-curve relative to a primary fund.

Can I invest in private equity through a self-directed IRA?

Yes. Self-directed IRAs let investors hold private market investments inside a tax-advantaged account. Some platforms accommodate this structure and some do not, so confirm directly with the platform before proceeding. Investing in private placements through a self-directed IRA also involves additional custodial requirements worth reviewing with a tax advisor first.