Under US law, an accredited investor is a person or organization that meets certain criteria established by law. These criteria may include:
Individual Income: A person must have an annual income in excess of a certain amount established by law.
Accumulated Wealth: A person must have net wealth (accumulated assets minus debts) in excess of a certain amount established by law.
Total Active Capital Under Management: An entity, such as an investment trust or hedge fund, must have a certain amount of assets under management.
Special Status: A person may also qualify as an accredited investor based on certain professional or government designations.
This status provides accredited investors with access to certain investment opportunities that are limited to non-accredited investors.
