Demystifying Accredited Investor Investments

December 11, 2023

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Exclusive Opportunities for Accredited Investor Investments

Accredited investor investments represent an elite tier of finance, opening doors to opportunities that are beyond the reach of the average investor.

This privileged category, defined by higher asset thresholds and income benchmarks, grants access to a suite of sophisticated and potentially more lucrative investment options. Recent data indicates a significant uptick in the engagement of accredited investors in markets traditionally reserved for institutional players.

These trends reflect the evolving appetite of high-net-worth individuals and underscore the growing importance of being well-informed and strategically agile in the exclusive world of accredited investor investments.

Current Trends in Accredited Investor Investments

The landscape of accredited investor investments is undergoing several shifts, mainly characterized by an expanding interest in increasingly diverse and unconventional asset classes.

Recent data shows that accredited investors are exploring beyond the traditional confines of stocks and bonds in greater and greater numbers, seeking to capitalize on alternative investment opportunities as interest rates in the US continue to cast doubts over the performance of public markets into 2024 and beyond.

This shift is driven by the pursuit of higher returns, broader diversification, and enhanced portfolio resilience against market volatility. Underscoring all of these data points is the need to diversify portfolios with non-correlating assets, and the shrinking number of public companies and IPO exits.

The search for diversity and potential returns naturally brings accredited investors to consider alternative assets like real estate, private equity, hedge funds, and Merchant Cash Advances (MCAs).

These alternatives offer distinct advantages, including the potential for above-market returns and reduced correlation with traditional market movements. Such investments are particularly appealing in the current economic climate, where traditional markets face uncertainties due to geopolitical tensions, economic shifts, and evolving global trade dynamics.

This trend indicates a strategic move by accredited investors towards assets that not only promise higher returns but also bring exclusivity and innovation to their portfolios.

A house-shaped model with money unfurling from the chimney for ‘Demystifying Accredited Investor Investments- What You Need to Know’
Unique investment doors open for accredited investors

The Growing Popularity of MCAs in Accredited Investor Portfolios

Merchant Cash Advances (MCAs) are increasingly becoming a cornerstone in the portfolios of accredited investors. Their rising popularity stems from their unique structure and potential for high returns.

Unlike traditional loans, MCAs provide upfront capital to businesses in exchange for a percentage of their future sales, offering a more personalized return model that is directly tied to the success of the business.

Recent data underscores the growing interest in MCAs among accredited investors. The global Merchant Cash Advance market size was valued at USD 620.31 million in 2021 and is expected to expand at a CAGR of 19.33% during the forecast period, reaching USD 1791.21 million by 2027.

The appeal of MCA investing lies in their potential to generate higher yields compared to conventional fixed-income assets, and their lower correlation with the broader stock market, which can lead to more stable returns in fluctuating economic conditions.

This makes MCAs an attractive option for diversifying investment portfolios beyond the traditional asset mix.

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Growth in alternative asset investing i set to continue well into 2027

Final Thoughts

For accredited investors, integrating MCAs into their investment strategies can provide a balanced approach to achieving portfolio diversification and growth. As the market for MCAs continues to mature, their role in accredited investor portfolios is likely to become increasingly significant, offering an interesting blend of risk management and profit potential.

At Supervest, we offer a 12-month MCA note with a target return of 10%. We also offer a 24-month note with a 12% target return.

Our Q3 report shows that we achieved a 100% success rate in our target returns.

Interested? You can get started here.

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