Private investments are restricted to investors who meet specific financial thresholds set by the SEC. This is what that means, and why it matters.
An accredited investor is an individual or entity that meets specific financial criteria established by the U.S. Securities and Exchange Commission under Regulation D of the Securities Act of 1933.
The designation exists for a reason. Private investments are exempt from the full registration requirements that apply to public securities. In exchange for that exemption, access is limited to investors the SEC deems financially sophisticated enough to evaluate and absorb the risks involved.
This is not an arbitrary gatekeeping exercise. Private investments carry real risks, including illiquidity, limited disclosure requirements, and the possibility of total loss. The accreditation standard is the SEC's way of ensuring participants understand what they are signing up for.
There are several ways to meet the accredited investor standard. You only need to satisfy one.
These criteria reflect the SEC's current rules as of 2026. The SEC periodically reviews and updates these thresholds. Always verify current requirements at sec.gov.
Public markets have layers of protection built in. Mandatory financial disclosures, independent audits, exchange-level listing standards, and SEC oversight. These exist because public securities are available to everyone.
Private markets operate differently. Companies raising capital through Regulation D exemptions are not required to register their securities with the SEC. They are not required to provide audited financials. There is no public exchange creating liquidity.
The accreditation requirement is the tradeoff. In exchange for access to investment opportunities that are unavailable in public markets, investors accept responsibility for conducting their own due diligence.
This is where most of the private investment industry falls short. The bar for accreditation is a financial threshold, not a sophistication test. Having a high income does not automatically mean you understand waterfall structures, preferred return mechanics, or the difference between a 506(b) and a 506(c) offering.
That gap is exactly why Equity Check exists.
We take verification seriously because the investments we source are structured as Regulation D offerings under Rule 506(c), which requires reasonable steps to verify each investor's accredited status.
This means you will be asked to provide documentation. Depending on which qualification path applies to you, this may include:
We work with third-party verification providers to make this process as straightforward as possible. Verification is completed before any investment commitment is finalized.
Under Rule 506(b), self-certification through a questionnaire is generally acceptable. Under Rule 506(c), which applies to our offerings, the issuer must take reasonable steps to verify status. A checkbox is not sufficient.
No. The value of your primary residence is excluded from the net worth calculation. However, mortgage debt on your primary residence is also excluded, unless the mortgage exceeds the home's fair market value, in which case the excess counts as a liability.
Joint income or joint net worth can be used to qualify. If you file jointly and your combined income exceeds $300,000, or your combined net worth (excluding primary residence) exceeds $1,000,000, you qualify as a couple.
The income test requires you to have met the threshold in each of the two most recent years and have a reasonable expectation of meeting it again in the current year. If your income has declined and you do not expect it to recover, you may not currently qualify under the income test. The net worth test has no lookback requirement.
The SEC has discussed adjusting accreditation thresholds for inflation since the current income and net worth figures have not changed since 1982. No changes have been enacted as of 2026, but it is an active area of regulatory discussion.
Start a conversation. We can walk you through the qualification paths and point you to the right verification resources. There is no cost or obligation.
