To invest in most private equity deals you must qualify as an accredited investor under SEC Rule 501 of Regulation D. There are three primary paths.
Income test
Individual income exceeding $200,000 in each of the prior two years, or $300,000 jointly with a spouse, with a reasonable expectation of the same level in the current year.
Net worth test
Net worth exceeding $1 million, individually or jointly with a spouse, excluding the value of a primary residence.
Professional designations
Since 2020, holders of certain FINRA licenses (Series 7, 65, and 82 in good standing) also qualify regardless of income or net worth.
Some deals require qualified purchaser status, a higher bar: $5 million in investments for individuals or $25 million for entities. Always confirm the threshold for the specific deal you are evaluating.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.