Accredited investor status, without the jargon

Narrower than the label suggests

"Accredited investor" is the gate to most private offerings, including ours, but the definition is narrower and more specific than the label suggests. It is set by the SEC in Rule 501(a) of Regulation D, and as of 2026 the core dollar thresholds are unchanged from where they have stood for years.¹

Guess the threshold

The three common individual pathways

Income. Individual income above $200,000 (or $300,000 jointly with a spouse or spousal equivalent) in each of the two most recent years, with a reasonable expectation of the same in the current year.¹ Worth noting: the rule says "income," not "earned income," so wages, business distributions, capital gains, and investment income generally all count.²

Net worth. Net worth over $1,000,000, alone or with a spouse, excluding the value of your primary residence. A caveat many people miss: mortgage debt above your home's value counts as a liability, and new borrowing against the home in the 60 days before you invest is also counted, to prevent inflating net worth by pulling out home equity.²

Professional credentials. Since a 2020 amendment, individuals who hold a Series 7, Series 65, or Series 82 license in good standing qualify regardless of income or net worth, as can certain "knowledgeable employees" of a private fund.¹ Entities have their own tests — generally $5 million in assets, or all equity owners being accredited.³

Why 506(c) means verification, not a checkbox

Most private funds rely on one of two exemptions. Under Rule 506(b), investors may generally self-certify their status. Under Rule 506(c) — the exemption that permits general solicitation, and the one our offerings use — the issuer must take reasonable steps to verify that each investor is accredited.⁴ That is a legal obligation on us, not a formality.

In practice, verification usually takes one of a few forms: reviewing IRS forms that report income (such as a W-2, 1099, Schedule K-1, or 1040) for the income test; reviewing recent statements and a credit report, dated within the prior three months, together with a written representation, for the net-worth test; or — often the simplest — a written confirmation from your CPA, attorney, registered investment adviser, or broker-dealer, issued within the last three months.⁴ Having one of these ready tends to make the process painless.

A moving target worth watching

The thresholds are not indexed to inflation, and the SEC periodically reviews the definition; proposals to expand the qualifying pathways or adjust the dollar figures surface regularly, though none had changed the core individual thresholds as of 2026.² This article is educational and general; whether you qualify depends on your specific facts, and nothing here is a determination of your status or legal advice. Confirm with your own qualified advisor.