Accredited Investor

What Is An Accredited Investor?

An accredited investor is an individual or entity that meets certain SEC thresholds that permit them to invest in less regulated investment opportunities.

A person is considered to be an accredited investor by meeting the following SEC criteria:

  • Earning individual income above $200,000 (or $300,000 in joint income with a spouse) in each of the past two years, with a reasonable expectation of meeting the same income threshold for the current year;

  • Maintaining a net worth of $1 million+ , individually or jointly with a spouse, not including the value of your primary residence; or

Individual can also qualify to be an Accredited Investor by meeting any one of these additional criteria:

  • The investor is a “knowledgeable employee” of a private securities fund, as determined by that particular fund;

  • The investor is an executive officer, director, trustee, general partner, advisory board member or person serving in a similar capacity of the issuer or an affiliated management person; or

  • The investor is a SEC- and/or state-registered investment adviser, general securities representative or private securities offering representative. The current requisite designations include individuals that maintain Series 7, Series 65 or Series 82 licenses in good standing with their relevant member firm.

An individual who doesn’t meet this criteria doesn’t attain this accredited investor status and is known as a non accredited investor.