An individual qualifies as an Accredited Investor if they meet any one of the following:
Income Test: Annual income exceeding $200,000 (or $300,000 jointly with a spouse) in each of the two most recent years, with a reasonable expectation of the same income level in the current year.
Net Worth Test: Net worth exceeding $1,000,000, either individually or jointly with a spouse, excluding the value of the primary residence.
Professional Credentials: Holds a Series 7, Series 65, or Series 82 license in good standing.
Entities (trusts, LLCs, corporations) with assets exceeding $5,000,000 may also qualify.
SEC Definition · Section 2(a)(51) of the Investment Company Act
Qualified Purchaser
A Qualified Purchaser is a higher standard than Accredited Investor. An individual or entity qualifies if they meet any one of the following:
Individual: Owns not less than $5,000,000 in investments.
Family-Owned Company: A company owned directly or indirectly by two or more members of a family that owns not less than $5,000,000 in investments.
Qualified Institutional Buyer: A trust, investment manager, or other entity that owns and invests on a discretionary basis not less than $25,000,000 in investments.
Qualified Purchaser status allows investment in certain funds that are not available to Accredited Investors alone.