What Is an Accredited Investor and What Investments Can You Access?
You may have heard the term “accredited investor” thrown around in financial conversations — but what does it actually mean, and why does it matter? If you qualify, it opens the door to a world of investment opportunities that most people never get to see.
The Official Definition
The SEC defines an accredited investor as someone who meets at least one of the following criteria:
· Income: Earned income exceeding $200,000 (or $300,000 combined with a spouse) in each of the past two years, with a reasonable expectation of the same this year
· Net worth: A net worth exceeding $1 million, excluding the value of your primary residence
· Professional credentials: Holds a Series 7, Series 65, or Series 82 license in good standing
· Knowledgeable employees: Certain employees of private funds may also qualify
The idea behind accreditation is that investors with sufficient financial sophistication or resources can evaluate — and absorb the risk of — investments that aren’t registered with the SEC.
Why Does Accredited Status Matter?
Most investments available to the general public — stocks, ETFs, mutual funds — are heavily regulated and registered with the SEC. That regulation provides protection, but it also limits the universe of opportunities.
Accredited investors can access private placements — investments that are exempt from SEC registration. These include some of the most compelling opportunities in the market today.
What Can Accredited Investors Access?
Private Equity
Ownership stakes in private companies before they go public. Historically, some of the greatest wealth creation has happened at this stage — before an IPO.
Real Estate-Backed Funds & DSTs
Pooled investments in commercial real estate, including Delaware Statutory Trusts — a popular option for investors completing 1031 exchanges or seeking passive income from institutional-grade properties.
Private Credit
Direct lending to businesses outside the traditional banking system. Private credit funds can offer attractive yields with shorter duration than public bonds.
Qualified Opportunity Zone Funds
Tax-advantaged investments in designated communities that allow you to defer and potentially reduce capital gains taxes — a powerful tool after a major liquidity event.
Energy Investments
Oil, gas, and renewable energy projects that may offer significant upfront tax deductions alongside long-term income potential.
Hedge Funds & Venture Capital
More sophisticated strategies and early-stage company investing — typically reserved for those with higher risk tolerance and longer time horizons.
The Advantage of Being Accredited
Beyond access, accredited investors benefit from:
· Less crowded opportunities — Fewer investors competing for the same deals
· Tax efficiency — Many private alternatives carry built-in tax advantages
· Portfolio diversification — True diversification beyond public markets
· Potential for higher returns — Private markets have historically outperformed public markets over long periods
How to Get Started
Knowing you qualify is just the first step. Navigating the private markets requires a trusted advisor who understands the landscape — and can match you with opportunities that align with your goals, risk tolerance, and tax situation.
At True North Private Investments, we maintain a weekly-updated alternatives marketplace exclusively for accredited investors. Whether you’re new to private investments or looking to expand your existing portfolio, we’ll help you find the right fit.
Think you qualify? Let’s find out what’s available for you.