Definition of Accredited Investor
The equivalent of "Accredit Investors" under Regulation D of the U.S. Securities Act of 1933, as amended is generally defined as follows:
- A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1,000,000 (or equivalent thereof in your functional currency);
- A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;
- A bank, insurance company, registered investment company, business development company, or small business investment company;
- An employee benefit plan, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
- A business in which all the equity owners are accredited investors;
- A charitable organization, corporation, or partnership with assets exceeding $5 million;
- An investor who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of alternative investments such as hedge funds, private equity and venture capital, and consents to being treated as a professional investor.
- Any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; or
- An entity which all of the unit owners and participants (i.e., all partners (including limited partners) of a partnership, shareholders of a corporation and the grantor of a grantor trust, but not the beneficiaries of a true trust) are accredited investors.