In the U.S., the Securities and Exchange Commission defines an Accredited Investor as an individual who meets one of the following criteria:

1. Income: Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year.
2. Net Worth: A net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

In addition to these, the SEC expanded the definition of an Accredited Investor in 2020 to include the following:

• Professional Certifications, Designations, or Credentials: Individuals with certain professional certifications, designations, or credentials recognized by the SEC. For example: Series 7, Series 65, and Series 82 license holders.
• Knowledgeable Employees of Private Funds: If an individual is a “knowledgeable employee” of a private fund, he or she may be considered an accredited investor for investments in that fund.
• Entities: Various types of entities — such as trusts, corporations, or partnerships — with assets exceeding $5 million.
  

Read about the type of investments Accredited Investors might be interested in.

Learn why Accredited Investors are interested in alternative investments.

Check out some of the most common professions of Accredited Investors.

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