Fund Structure
What is Accredited Investor?
An accredited investor is an individual or entity that meets the SEC's wealth or income thresholds — enabling them to invest in unregistered securities, including private fund offerings under Regulation D.
The SEC defines an accredited investor as an individual with net worth over $1 million (excluding primary residence) or annual income over $200,000 ($300,000 with a spouse/partner) for the past two years. Entities such as banks, broker-dealers, or entities with over $5M in assets also qualify.
Rule 506(b) of Regulation D allows funds to accept up to 35 non-accredited investors, while 506(c) requires all investors to be accredited. Most institutional LPs comfortably meet accredited investor criteria.
Also known as: AI
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