How Many Accredited Investors Are There In America?

Nov. 07, 2017 2:27 PM ET2 Comments

We estimate in 2016 there were 12,417,040 Accredited Investor Households in America, 9.86% of all American Households. Further, we calculate Accredited Investor households controlled roughly $65.88 Trillion in wealth in 2016 or 75.8% of United States private net worth.

What is the United States Individual Accredited Investor Criteria?

The Securities Act of 1933, §230.501, lays out the exact terms and definitions to be an Accredited Investor. The three most common ways of accreditation for an individual/household are the following:

  • $1,000,000 in net worth outside Equity in a Primary Residence (see our Net Worth Percentile Calculator, which allows a primary home screen)
  • (or) One household member earning $200,000 the last two straight years and expecting it to continue in the current year.
  • (or) With a spouse, earning $300,000 the last two straight years and expecting it to continue in the current year.

Note that the original law specifically calls out net worth for the classification. Also note: for these categories households have to maintain the criteria in subsequent years to keep their accreditation.

Of these, we estimate that the net worth qualification is easily the most common way to achieve accreditation - 11,267,375 households qualified on net worth alone. (See our post on millionaires in America).

Accredited Investors in America: A Large Increase Since 2013

We improved our methodology from our 2013 article to better compare how the number of accredited investors is changing over time. There are roughly 2.82% more total households in America between 2013 and 2016. Even with that increase, the number of new households achieving accreditation was very high.

We estimate 2,166,415 more accredited households than 2013, increasing from 10,250,625 to 12,417,040. There were roughly another 2,217,895 households qualifying on net worth alone. That measure went from roughly 9,049,480 to 11,267,375 households.

Change in Accredited Investors

This article was written by

The guys behind the guys behind the guys. We also build calculators. Twitter: @DQYDJHQ

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