What You Need to Know
- The expanded access will first be available to eligible self-directed Vanguard clients.
- It is expected to be available to eligible advised clients of Vanguard Personal Advisor Services in “the near future.”
- Qualified individual investors and accredited investors will be eligible for the private equity offering.
Vanguard is expanding its private equity offering to include qualified individual accounts this summer. The offering, which was initiated in 2020, has been limited to institutional investors.
The expanded access will first be available to eligible self-directed Vanguard clients and subsequently to eligible clients of Vanguard Personal Advisor Services in “the near future,” according to the Vanguard press release.
Only qualified purchasers and accredited investors are eligible. Qualified purchasers include individuals or family-owned businesses that own $5 million or more in investments, excluding primary residence or business property, or an individual or entity with at least $25 million in private capital.
Accredited investors include individuals with a minimum net worth of $1 million, or more than $200,000 in annual income and financial professionals with Series 7, 65 or 82 licenses in good standing.
In announcing the news, Vanguard CEO Tim Buckley said in a statement, “Private equity has the potential to improve long-term investment outcomes of a broadly diversified portfolio. Over time we will expand access to this asset class, which has traditionally been reserved for the wealthiest investors, to the many qualified investors at Vanguard.”