Accredited Investor
An accredited investor is an individual or entity that meets regulatory standards allowing participation in certain private offerings.
Definition
Definition Accredited investor status is a regulatory eligibility category that determines who can invest in private securities offerings under certain exemptions. The requirements vary by jurisdiction and are based on financial sophistication indicators such as income, net worth, or institutional status. Allocator Context For most institutional allocators, accredited investor status is baseline and operational. For individuals and family office structures, qualification must be documented and verified within subscription/KYC processes. Errors here can create legal risk for the fund and delay admission. Decision Authority Compliance and counsel typically confirm eligibility. Funds may reject subscriptions that cannot be verified cleanly. Why It Matters for Fundraising Eligibility friction is real friction. Managers who provide clear, correct subscription language and admin workflows reduce onboarding delays and avoid compliance issues. Key Takeaways Regulatory eligibility requirement Verification can slow onboarding Must be documented accurately Errors create legal and reputational risk