What are the qualifications of an accredited investor?
You qualify if any of the following below apply to you:
- Annual income is greater than $200k (or $300k together with a spouse) for the last 2 years, and I expect to earn the same or greater for the current year.
- My net worth is greater than $1M (excluding my primary residence).
- Any natural person who is a holder in good standing of the Series 7, Series 65, or Series 82 licenses.
- Any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a “sophisticated” person who is “sophisticated”.
- Any entity in which all the equity owners are accredited investors.
- Any corporation, limited liability company, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5 million.
- Any “family office” with at least $5 million in assets under management and its “family clients” as each term is defined under the Investment Advisers Act of 1940.
- See Rule 501 for the full definition of “accredited investor”.