Accredited Investor

Accredited investors are individuals or entities that meet certain financial criteria set by the SEC, qualifying them to invest in private offerings.

Qualification criteria (individuals)

Must meet at least one:

• Income: $200,000+ annual income ($300,000 with spouse) for the last two years, with expectation of the same
• Net worth: $1 million+ excluding primary residence
• Professional credentials: Series 7, Series 65, or Series 82 license holders
• Knowledgeable employees: Of private funds

Why accreditation exists

Private investments (hedge funds, private equity, venture capital, pre-IPO stock) don't have the same disclosure requirements as public securities. The SEC assumes accredited investors can:

• Evaluate complex investments independently
• Absorb potential losses
• Access professional advice

What you can access as an accredited investor

• Private equity and venture capital funds
• Hedge funds
• Private placements (Regulation D offerings)
• Real estate syndications
• Pre-IPO companies

Important note

Accredited status does not mean an investment is safe or suitable. Many accredited investors lose money in private investments. Due diligence is still essential.