An accredited investor is the United States category of investor permitted to buy private securities, including hedge fund interests. Individuals qualify with income above US$200,000 (US$300,000 jointly) or net worth above US$1 million excluding their home; entities qualify with assets above US$5 million.
Accredited-investor status is defined in SEC Regulation D and is the minimum bar for most US private fund offerings. Larger hedge funds relying on the 3(c)(7) exemption require the higher qualified-purchaser standard instead.
The status is self-certified in the subscription agreement and verified by the fund or its administrator through documents or third-party letters.
US investors in POD funds must meet the eligibility standard in the fund's documents, which will reference accredited-investor or qualified-purchaser status alongside the fund domicile's professional-investor test. [CONFIRM: US investor eligibility policy.]
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