The investor’s field guide · A
Accredited investor
A US legal status, based on income, net worth or a securities licence, that determines who can be offered many private investments.
Explained by the editorial team
In the United States, an accredited investor is a status defined by the Securities and Exchange Commission under Regulation D. Many private offerings, including early-stage equity, can only be marketed to people and entities that qualify, because they carry fewer disclosure requirements than offerings registered for the public market (SEC, accredited investor definition).
The main tests
An individual qualifies by meeting at least one of three tests: income over $200,000 alone, or $300,000 with a spouse or partner, in each of the past two years, with a reasonable expectation of the same this year; net worth over $1 million, excluding the primary residence; or holding a Series 7, 65 or 82 securities licence in good standing. Trusts, companies and other entities qualify under separate rules based on their own assets or ownership.
What to examine
Qualifying as an accredited investor is a legal gate, not a judgement on investing skill. It opens access to certain deals; it says nothing about whether any one of them is a good investment. The thresholds can change, so confirm the current test against the SEC's own guidance before relying on it, and keep a record of how and when you qualified.
General information, not investment, legal or tax advice. Examples are illustrative. Read the disclaimer.