The requirements for becoming an accredited investor change based on your location. In the U.S., the rules are outlined by the Security Exchange Commission (SEC), but local financial regulatory bodies also determine them.
Here is a summary of the requirements:
- An individual with credentials such as Series 7, Series 65, or Series 82 licenses.
- Family offices with at least $5 million in assets.
- Business entities that own over $5 million or more in assets.
- An individual with a professional certification, or status as a private fund’s “Knowledgeable Employee.”
- Income: Has an annual income of at least $200,000, or $300,000 if combined with a spouse’s income. This level of income should be sustained from year to year.
- Net Worth: Has a net worth of $1 million or more, either individually or together with a spouse, but excluding the value of a primary residence.
