By Ali Shekofti, CEO and Founder Accrete.io
The severity of the gap that has been opening between the have and the have-not is undisputable. The wealth gap is in plain view these days, and now it is at its widest between the ultra-wealthy and everyone else. As news of billionaires exponentially growing their wealth takes hold over primetime segments, the chyron below often reads, “workers still fighting for fair compensation.” Despite a collective recognition that the wealth gap is only becoming broader and more destructive, the solutions are far, and few in between, which is why I want to be clear about why I believe opening Private Markets is one of the essential ways we can give more access to wealth creation to the many and not the few.
At Accrete, we are working towards closing the wealth gap by unlocking private investment opportunities so that the average investor — beyond the 1% — can take a share of the future they deserve.
Having spent my career in technology and financial services, I have seen the many reasons why the wealth gap has gotten this bad. One often overlooked area is the investments opportunities that are available to individuals who have huge amounts of capital ready to be deployed. On average, ultra-high-net-worth investors have close to 50% of their assets in alternative investments — an incredibly lucrative form of investment that most people can’t even access. Without the liquid assets needed to buy into private markets, average investors are forced to navigate less attractive investment opportunities in the public market that gain lower returns and pose a higher risk to their portfolio, allowing the already uber-wealthy to get ahead. And I experienced it first hand.
Despite working in private equity, I too found myself being squeezed out of significant, lucrative investment opportunities. At the same time, those with more money were allowed to play the game freely and with fewer rules. And it’s designed to be this way! Take regulations over who gets to be an accredited investor, add six-figure minimum buy-in amounts, and it’s no wonder that the wealth gap is expanding. We realized that if we couldn’t get the system to work for ourselves, it clearly wasn’t working for everyone else.
So we used our understanding of the industry to create Accrete, a tech-So we used our understanding of the industry to create Accrete, a tech-enabled platform that builds a bridge between investors and the investment opportunities that have historically been off-limits to the rest of us. As a result, we’re minimizing the opportunity gap and, in doing so, working towards closing the wealth gap.
A core belief of ours at Accrete is that inclusive capitalism is the way forward. To change the system, the first thing we should make sure to do it to invite everyone to participate in it. So we’re lowering minimum buy-in amounts and leveling the playing field so that individual investors are empowered to play the same game as the uber-wealthy. With our combined investment power, we can break up the cost and lower barriers to investing so that our users have access to the top 1% of deals shopped worldwide. By unlocking highly sought-after investment opportunities in the private market, we’re reimagining what is possible and helping investors grow their wealth — in ways previously only imaginable to the elite.