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Accredited Investor
A person, trust, or institution eligible to invest in companies exempt from SEC registration (e.g. hedge fund) because they meet a standard outlined in Regulation D of the Securities Act of 1933.
Eligible individuals would have a net worth over $1,000,000 (single or joint) at the time of investment, and/or consistently earn over $200,000 a year ($300,000 a year jointly). Certain organizations (e.g. charity) with over $5 million in assets would also be eligible, along with insurance companies and other professional entities. Since minimal disclosure offers the SEC less opportunity to spot any wrongdoing, accredited investors are expected to conduct their own due diligence on these investment opportunities. They are presumed to be sophisticated enough to understand the strategy in which they are investing.