Accredited Investors

An investor is classified as ‘accredited’ as defined in Regulation D of the Securities Act of 1933 if the investor meets one or more of several criteria. The most common test that is used in the US is the following:

(i) a natural person who has a net worth (or joint net worth with that person's spouse or spousal equivalent) immediately prior to the time of purchase exceeding US$1 million (excluding the value of that individual's primary residence); or

(ii) a natural person who has income exceeding US$200,000 (or joint income with the investor's spouse or spousal equivalent exceeding US$300,000) in each of the two most recent years and has a reasonable expectation of reaching the same income level in the current year