4 easy steps to becoming an accredited investor
In this article, we explain what an accredited investor is, how to prove your accreditation status, and the opportunities available to accredited investors.
If you’re considering investing outside of traditional assets (stocks, bonds and cash), you’ve likely come across the term ‘accredited investor.’
You might be wondering what the term means, what qualifications are needed to become an accredited investor, and what’s so special about being accredited anyway–what opportunities do accredited investors gain access to?
In this article, we’ll explain all of the above, and also share how digital platforms like Heron Finance make it easy to verify that you are an accredited investor.
Accredited investors are investors who meet the financial or professional criteria required to invest in certain alternative assets.
Investors need only meet one requirement to gain accreditation. Once verified, they can access alternative investments.
Heron Finance provides a simple 4-step process to verify your accreditation.
Get a diversified private markets portfolio built for market volatility.
What is an Accredited Investor?
In the U.S. individual investors can become accredited, which simply means they meet the financial or professional criteria necessary to invest in certain asset classes.
Anyone automatically qualifies as an “accredited investor” if they meet just one of the following criteria:
- Income: Individual income of $200,000, or joint (with a spouse or partner) income of $300,000 for the two prior years, with the same anticipated in the current year
- Net Worth: Individual or combined (with a spouse or partner) net worth of $1 million or greater, excluding your primary residence
- Exam: A Series 7, 65, or 82 in good standing. Both the Series 7 and Series 82 require sponsorship from a professional organization, but it’s possible to take the Series 65 on one’s own (with a comprehensive test prep book and hours of independent study, of course).
What Investment Opportunities are Open to Accredited Investors?
Accredited investors can access a variety of opportunities typically reserved for institutional and HNW investors, including:
- Venture capital
- Private equity (See how to invest in private equity)
- Private credit (See how to invest in private credit)
- Private infrastructure (See how to invest in private infrastructure)
- Hedge funds
- Real estate investment trusts (REITs)
- Specialized alternative investment funds (such as fine art or fine wine)
Get a diversified private markets portfolio built for market volatility.
4 Steps for Verifying Your Status as an Accredited Investor
On the Heron Finance platform, we have a simple four-step process to verify your accreditation and .
- Step 1: Create your Heron Finance account
- Step 2: Connect your payroll or upload (or even screenshot) the relevant documents from your brokerage or bank accounts.
- Step 3: Heron Finance’s verification partner will review your documents
- Step 4: Once approved, you’ll be able to invest in private market strategies via the Heron Finance platform.
It’s as simple as that.
Get a diversified private markets portfolio built for market volatility.
