What is an accredited investor?
Someone the SEC allows to invest in private offerings such as hedge funds: generally a person with income over $200,000 ($300,000 with a spouse) in each of the last two years, or a net worth over $1 million not counting their home.
People
- Income over $200,000, or $300,000 together with a spouse or partner, in each of the last two years, expecting the same this year.
- Net worth over $1 million, alone or with a spouse or partner, not counting their main home.
- Holders of the Series 7, 65 or 82 licenses, in good standing.
- "Knowledgeable employees" of the private fund they invest in.
Organizations
Banks, brokers, insurers, registered investment advisers, companies and trusts with over $5 million in assets, family offices with over $5 million under management, and entities owned entirely by accredited investors.