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Glossary

What is an accredited investor?

An accredited investor is an individual or entity who meets specific criteria to invest in securities that are not registered with the Securities and Exchange Commission (SEC) or available to the public. These rules help determine an investor’s sophistication and ability to withstand greater risk.

An accredited investor must have:

  • Over $200,000 in income (or $300,000 if combined with a spouse or spouse-equivalent) the past two years with the same expected minimum for the current year
  • A net worth of over $1 million either alone or with a spouse/spouse-equivalent (excluding the value of a primary residence)
  • Any of the following securities licenses: Series 7, 65 or 82

Businesses with total assets exceeding $5 million are also considered to be accredited investors.

Accredited investors who meet the above criteria are able to invest in a wide range of private market investments not accessible by non-accredited investors, including:

  • Venture capital
  • Private equity
  • Hedge funds
  • Private startups
  • Fine art and collectibles
  • Farmland
  • Certain real estate investment funds
  • Specialty investment funds

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