Accredited Investor

As per the SEC’s definition, an accredited investor encompasses different categories

Firstly, it includes individuals who satisfy either of these requirements – having an annual income surpassing $200K individually or reaching $300K jointly with a spouse or spousal equivalent for two consecutive years while expecting a similar income this year; possessing net assets exceeding $1 million excluding their primary residence unless they owe more on their mortgage than what the residence is worth.

Secondly, it encompasses institutions like venture funds or trusts that possess assets surpassing $5 million.

Thirdly, it consists of entities composed entirely of accredited investors along with SEC- and state-registered investment advisers as well as exempt reporting advisers filing with the SEC. Additionally, individuals holding specific professional certifications such as Series 7, Series 65, and Series 82 licenses are also considered accredited investors by this definition.

Moreover, family offices managing assets worth over $5 million and their family clients, as defined by the Investment Advisers Act, fall under this category. Finally, any entity with investments exceeding $5 million that was not established solely for the purpose of investing in the offered securities is also deemed an accredited investor.