Accredited Investors in the US Population

ABSTRACT Over the past few decades, there has been substantial growth in “private” financial markets, which generally have restrictions on who can participate and lower regulatory requirements. A primary way for individuals to qualify for private investments is to be an “accredited investor,” typically meaning that they meet certain income, wealth, or experience thresholds. We analyze novel, nationally representative survey data to characterize accredited investors in the United States and show how they differ from non‐accredited investors. Approximately 12.6% of the population qualifies as an accredited investor, primarily based on net worth. Most accredited investors (75%) qualify under only a single threshold. Accredited investors have higher overall income, educational attainment, and indicators of financial sophistication than those who do not qualify. Finally, they are more likely to own various asset types, including 4.3% who report owning private market securities, as compared to 1.1% of non‐accredited investors. We discuss implications for policymakers and practitioners.