For individuals, accredited investors have historically been defined by the SEC as anyone who has:
- annual income of $200,000 or more (or $300,000 or more jointly with a spouse) in each of the last two years, and reasonably expects the same for the current year, OR
- has a net worth of $1 million or more (either alone or with a spouse), excluding the value of the person’s primary residence.
Effective December 8, 2020, “spousal equivalents” may be considered in the calculation of joint income or net worth. An accredited investor also now includes anyone who:
- holds in good standing one or more of the following professional designations or credential that the SEC has designated as qualifying an individual as an accredited investor:
- General Securities Representative license (Series 7);
- Investment Adviser Representative license (Series 65); or
- Private Securities Offerings license (Series 82)
- is a “family client” of a “family office” whose investment is directed by the family office, OR
- is a “knowledgeable employee” or officer or director of the issuer of the securities (or affiliated manager), where the issuer is a private fund relying on Sections 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940.