The ranks of America’s wealthy are swelling.
The US ended 2025 with 8.7 million high-net-worth individuals, those with a net worth over $1 million excluding equity in their primary residence, according to a 2026 report from Capgemini, a French IT and consulting firm. That’s an increase of around 9%, with 736,000 new millionaires in the US in 2025, mainly due to worldwide AI fervor.
And those freshly minted millionaires may now qualify as accredited investors.
The designation allows investors who meet certain income, net-worth or professional thresholds to access private markets, including hedge funds and private equity. For investors who missed the chance to get in on SpaceX before its historic IPO, accredited status is a key to access the next generation of private-market deals. Wall Street is also increasingly targeting these so-called “mini-millionaires,” with firms such as Blackstone rolling out products aimed squarely at this tier of wealth.
The accredited-investor designation dates back to the Securities Act of 1933, though a key change came with the 2010 Dodd-Frank Act, which excluded primary residences from net-worth calculations. The underlying assumption is that those who meet the thresholds are likely better positioned to understand — and withstand — potential losses.
Even so, as evidenced by the Capgemini report, the pool of eligible investors has expanded dramatically. Many may not even realize they qualify, or know what doors it might open for them.
“In my experience, most investors are unaware of their status until presented with an opportunity to invest by their financial advisers,” said Jeffrey Janson, a senior wealth adviser at Fiduciary Financial Advisors.
Here’s a look at what the status unlocks, what it doesn’t and what it means for your investing.
The Wealthy Who Already Qualify
There’s no certificate, card or formal designation that comes with being an accredited investor — no plaque to hang on the wall. Accredited status is effectively an invisible credential, established deal by deal, and only when you need it.
Under the Securities and Exchange Commission guidelines, investors need to meet at least one of several criteria, which fall into two buckets, financial and professional. On the financial side, individuals qualify if they have either:
A net worth of at least $1 million, individually or jointly with a spouse or partner, excluding the value of their primary residence; orAnnual income of more than $200,000 individually, or $300,000 jointly, in each of the past two years, with a reasonable expectation of reaching the same level in the current year.Advisers typically verify status using tax returns, W-2s or up-to-date net worth statements. The thresholds are meant to signal a financial cushion to absorb losses, though advisers say they’re an imperfect proxy — and one that hasn’t been updated in more than four decades, even as asset prices and incomes have risen.
“I don’t think that these levels are necessarily a good indicator of somebody’s financial sophistication,” said Gary Ribe, chief investment officer at Accretive Wealth Partners, adding that if anything, they’re an indicator that the person could “bear some risk.”
If You’re Not Wealthy Enough, You Can Test Into It
For those who don’t meet the income or net-worth requirements, there is another path through professional credentials.
Certain financial licenses — including the Series 7, Series 65 and Series 82 — can confer accredited status. Earning them means passing exams administered by the Financial Industry Regulatory Authority (FINRA), typically tied to a finance job. Providers like Kaplan, Securities Training Corp. and Pass Perfect offer crash courses and practice tests. Most candidates spend anywhere from a few weeks to a few months studying.
Of the options, the Series 65 is often viewed as the most accessible because it doesn’t require firm sponsorship or a prior Securities Industry Essentials (SIE) exam — both of which are needed for licenses like the Series 7 and Series 82.
Other qualifying routes are more situational. Directors, executive officers and general partners of a company can qualify for offerings tied to their business. So can certain family office clients and “knowledgeable employees” of private funds, though generally only for investments related to those entities. Corporations, partnerships and trusts may also qualify, typically by holding more than $5 million in investments.
Once You’re Accredited, Understand What That Unlocks
In theory, accreditation opens the door to private markets. The category spans venture capital, private equity, hedge funds, private credit and real estate investments that don’t trade on public exchanges.
“What gets the most buzz are oftentimes private companies of ‘pre-IPO’ status household names in tech, defense and AI,” said Vasilis Izanidis, financial adviser at Oak Leaf Wealth Management.
In practice, access is usually indirect through funds, feeder vehicles or one-off syndicates rather than direct stakes in companies. Platforms like Hiive or EquityZen say they offer another route into private companies, but supply depends on willing stock sellers so the most sought-after names may be scarce or nonexistent. In other words, think of your “accredited” status more as a baseline requirement than a VIP pass.
Minimum investments can range from a few thousand dollars to $250,000 or more. Many deals are structured as special purpose vehicles or SPVs, where buyers own a stake in a vehicle rather than the underlying company. That added layer can limit transparency and leave investors one step removed from the asset.
Tax Perks, With Caveats
Some private investments come with tax advantages, though they tend to be highly structure-dependent. Qualified opportunity funds, for example, allow investors to defer taxes on certain gains while directing capital into designated development zones. Many are offered through private placements limited to accredited investors.
Real estate investors may also use strategies like 1031 exchanges, which defer capital gains taxes when proceeds are reinvested into similar properties.
In both cases, eligibility and benefits can vary widely, so investors should assess strategies with a tax adviser.
What Doesn’t Show Up in the Pitch
There are hurdles that investors often underestimate when venturing into private markets. For example, valuations can be stale or opaque, particularly in periods of stress. As a result, risks right now are “higher than normal,” said Ribe, pointing to recent strains in private credit.
Liquidity is another constraint. Investors may be locked in for years, and exiting early can be difficult, especially if too many people try to redeem at once. That long time horizon is often underestimated, said Brian Spinelli, co-chief investment officer at Halbert Hargrove. Capital can be tied up for seven to 10 years or more, with implications for everything from cash flow to retirement planning.
There are also structural quirks: capital is often called over time rather than invested upfront, meaning investors may need to commit additional funds on short notice, even as earlier investments remain illiquid.
Qualifying as an accredited investor is only the first step. A higher tier known as a qualified purchaser requires at least $5 million in investments for individuals, or $25 million for entities. That distinction can determine access to an entirely different set of funds. Beyond that lies the domain of family offices, which handle the fortunes of the mega-wealthy — a reminder that in private markets, access is tiered, with another level almost always above you.