Best Investment Opportunities for Accredited Investors in 2023

Best For Diversification

Yieldstreet

Yieldstreet

4.5
4.5/5

Best for Reliable Cash Flow

AcreTrader

AcreTrader

4.5
4.5/5

Invest in Art

Masterworks

Masterworks

4.5
4.5/5

Best for Short Investing Horizons

Percent

Percent

4.5
4.5/5

Best for Real Estate

Equity Multiple

EquityMultiple

5
5/5
Best Investment Opportunities for Accredited Investors

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Accredited investors typically have either $200,000 in annual income or $1 million in net worth. As a result, they have greater financial resilience than the average consumer and gain access to additional investments and alternative platforms.

Let’s explore some of the best investment opportunities for accredited investors in 2023.

The Best Investment Opportunities for Accredited Investors in 2023

Best Investment Opportunities for Accredited Investors in 2023 Compared

PlatformPrimary OfferingFeesMinimum Investment
YieldstreetMultiple asset classes1% to 4% annual fees for management and administration $2,500
EquityMultipleDiverse commercial real estate0.5% to 1.5% of invested capital per year plus origination and minor admin fees$5,000; usually between $10,000 and $30,000
MasterworksFine art1.5% annual fee and 20% of sales proceeds$15,000
AcreTraderFarmland2% of property value at purchase and 0.75% in annual management feesVaries by listing; Often $15,000 to $40,000
VinoVestWine1.90% to 2.50% annual fee for managed accounts; None for manual trading$1,000 for managed account; None for manual trading
PercentPrivate creditNone$500 for short term note programs
Private Equity and Venture Capital FundsPrivate companiesVariableRanges from roughly $250,000 to $25 million

1. Yieldstreet: Many Alternative Investments

Yieldstreet lets accredited investors purchase a wider variety of alternative asset classes than any other platform. For example, that includes art, private equity, cryptocurrency, private credit, real estate, and venture capital opportunities.

As a result, Yieldstreet is a great way to diversify your portfolio beyond stocks and bonds. It offers income-oriented, growth-oriented, and balanced investment options with a range of minimum investments, target returns, term lengths, and payout schedules.

You can even invest in some of its offerings through Individual Retirement Accounts, 401(k)s, and pension plans, making it easy to incorporate YIeldstreet into your tax avoidance and retirement plans.

To start investing in Yieldstreet’s single asset class offerings, you must verify your identity, link a bank account, and show evidence of your accredited investor status. However, the Yieldstreet Prism Fund is open to non-accredited investors.

Once you open an account, you can browse Yieldstreet’s opportunities, each of which passed a rigorous due diligence process to be on the platform. You’ll also find information to help you assess them, such as past performance metrics and tax details.

Alternatively, you can take a more passive approach and let the platform give you investment recommendations. It uses a proprietary algorithm to analyze your time horizon, risk tolerance, and investment style, then suggests specific offerings.

After making your selections, you’ll be able to track your performance and earnings through the Yieldstreet dashboard.

There’s no cost to make an account, but Yieldstreet charges an annual management fee on every offering ranging from 1% to 4%.

Try Yieldstreet

2. EquityMultiple: Commercial Real Estate

    EquityMultiple is an alternative investment platform specializing exclusively in commercial real estate investment transactions for accredited investors. However, it still offers a surprisingly diverse mix of investment opportunities.

    The real estate crowdfunding site lets you invest in multiple forms of financing for real estate deals, each of which falls into one of the following categories:

    • Keep: These include diversified notes that serve as savings account alternatives and provide relatively attractive yields in low-rate environments. For example, you might find one with a $5,000 minimum investment, a 6.5% annualized yield, and a six-month repayment term.
    • Earn: These opportunities prioritize cash flow. They’re usually arrangements with a higher payment priority and relatively short repayment terms, such as senior debt and preferred equity. You could see an opportunity with a $25,000 minimum investment and 12% to 15% annual return targets redeemable after six months.
    • Grow: These are typically value-add investments that generate lower short-term returns but have higher potential upside. A representative investment opportunity would have a minimum investment of $25,000, a target yield of 5%, and a target net internal rate of return (IRR) of 20%.

    In addition to varying significantly in terms and structure, these real estate investment opportunities span a variety of markets and property types. However, all of them are subject to a rigorous due diligence process to ensure quality.

    The management fees associated with your investments depend primarily on the type of financing arrangement. Common equity investments usually have a 0.5% to 1.5% annual management fee, while debt and preferred equity typically cost 1%.

    Try Equity Multiple

    3. Masterworks: Fine Art

      Masterworks is an alternative investment platform that allows you to invest in fine art. However, you can only purchase shares representing your ownership, not physical pieces of artwork.

      Like most platforms on this list, Masterworks does extensive due diligence to ensure it offers high-quality opportunities. It uses proprietary data to find artists with momentum and purchase their artwork at a fair price.

      Next, Masterworks files an offering circular with the Securities and Exchange Commission, allowing investors to contribute to the deal and purchase shares of the underlying asset.

      Typically, Masterworks holds onto artwork for three to 10 years. Investors can either wait until the holding period expires to receive a share of the proceeds upon disposal or sell their shares ahead of time on Masterwork’s secondary market.

      Masterworks’s secondary market lets members buy and sell shares of iconic artwork with other investors. You’ll often find lower minimums investment requirements than those on primary offerings, and there are no transaction fees.

      Meanwhile, Masterworks charges 1.5% annually during the holding period and takes 20% of the total proceeds when it sells each painting. These fees cover professional storage of the artwork, insurance, and administrative costs.

      Accreditation isn’t actually required to use the Masterworks platform, but you’ll need to complete an application to sign up for an account. You’ll also have to speak with one of the platform’s representatives to discuss your goals before you can start investing.

      Try Masterworks

      4. AcreTrader: Farmland

        AcreTrader is an alternative investment platform similar to EquityMultiple that allows accredited investors to participate in real estate transactions. However, it specializes in farmland rather than commercial properties.

        That said, the two platforms share a relatively similar structure otherwise. AcreTrader scours the country for potential deals, only selecting a fraction of those they review.

        Each time it finds a farm that meets its requirements, AcreTrader forms a unique business entity, usually a limited liability company (LLC). It then signs a contract with the owner, reserving a brief window for due diligence and fundraising.

        That period typically lasts between one and three months, during which AcreTrader investors can purchase shares in the entity contracted to buy the farm. Each share equals roughly a tenth of an acre.

        AcreTrader’s management team then works with the farm to increase its net operating income by providing technological improvements and implementing best practices.

        AcreTrader typically holds onto its properties for five to 10 years. During that period, investors receive cash dividends each December, and AcreTrader charges an annual administration fee equaling 0.75% of the overall farm value.

        At disposal, investors receive their principal and any appreciation in the rental property’s value during the holding period. In addition, AcreTrader plans to implement a secondary marketplace like Masterworks in 2023 to let investors trade their shares early.

        Try AcreTrader

          5. Vinovest: Wine

          Vinovest is an alternative investment platform that lets you invest in fine wines. It’s open to non-accredited investors, and you can get started with a lower initial investment than most other options on this list.

          In fact, there are no minimum requirements if you use its marketplace to invest manually. The Vinovest Marketplace lets you buy and sell wines by the bottle, just like you would trade stocks.

          However, you need to be reasonably knowledgeable about wines to manage your own portfolio. If you don’t have much experience, you may be better off with a Vinovest managed account.

          If you go the latter route, you fill out a questionnaire with Vinovest regarding your investment goals, risk tolerance, and time horizon. Its master sommeliers will then use proprietary algorithms to build your portfolio.

          Here are the managed account options:

          • Starter: $1,000 minimum balance and 2.50% annual fee
          • Plus: $10,000 minimum balance and 2.35% annual fee
          • Premium: $50,000 minimum balance and 2.15% annual fee
          • Grand Cru: $250,000 minimum balance and 1.90% annual fee

          Investment-grade wines have a multi-year drinking window, so the Vinovest team will help you sell when your wine’s value approaches its peak. Alternatively, you can hold onto them indefinitely or drink bottles yourself.

          Try Vinovest

          6. Percent: Private Credit

            Percent is an alternative investment platform that lets you earn passive income through private credit deals. These are financing arrangements negotiated between non-bank lenders and various borrowers, including businesses and consumers.

            Frequently, private credit borrowers can’t qualify for credit accounts from traditional financial institutions because they’re considered too high-risk. As a result, Percent charges them relatively high-interest rates, and investors can earn a substantial yield.

            Private debt also tends to offer short repayment terms. Percent listings usually have a maturity date of nine months or less. Some return their principal and interest in just a month.

            Fortunately, there aren’t any fees to invest in individual deals listed on the platform. However, there’s a 1% annual management fee for Percent’s Blended Notes, which are funds diversified among its various structured notes.

            To sign up for an account with Percent, you must meet the accredited investor requirement as of early 2023. However, the platform intends to open the site to non-accredited investors eventually.

            Try Percent

            7. Private Equity and Venture Capital Funds

              Alternative investment platforms are a convenient way for accredited investors to diversify their portfolios into various asset classes. However, you don’t have to limit your investment options to digital marketplaces.

              For an accredited investor, another lucrative investment option is to contribute to private equity and venture capital funds. These firms invest in businesses they deem to have significant growth potential while they’re early in their development.

              In addition to contributing capital, private equity and venture capital firms leverage their expertise and connections to add value to the companies they acquire. As a result, they may generate higher returns than investments in the public stock market.

              The high potential upside makes private equity and venture capital funds attractive, but it’s not the most accessible asset class. Only an exceptionally high net worth individual investor can participate since the minimum investment can be as much as $25 million.

              In addition, you’ll need to do extensive research on multiple firms’ track records to find the right private fund before making an investment decision since they’ll be largely responsible for your eventual rate of return.

              Do Accredited Investors Get Better Returns?

              Due to their income or net worth, accredited investors can access additional investment opportunities and alternative assets that may help them get higher returns than the average investor. They can also achieve greater diversification, reducing volatility.

              That said, there’s always the potential for losses in investing. In fact, accredited investor opportunities often carry more risks than investments in traditional stocks and bonds. As a result, being an accredited investor is not a guarantee of success.

              Ultimately, your long-term returns have more to do with your ability to stick to a sound investment strategy for decades than whether or not you meet the accredited investor definition.

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