Some of the most lucrative parts of capitalist markets are off-limits to most Americans, not because of the money, but because of regulations. Investing in private equity, which includes high-performing vehicles such as hedge funds, is only allowed for the wealthiest among us: those who earn more than $200,000 annually or have a net worth of at least $1 million.
Regular Americans have been unable to invest in some of the world’s most successful tech companies before they went public. Until recently, Uber, Lyft, WeWork, and other startups were the domain of so-called accredited investors, who make up little more than 8 percent of U.S. households. This select demographic owns 70 percent of private wealth in the country—$45.5 trillion.
