What are Accredited Investors and Qualified Purchasers?

As someone who has already built a solid foundation in public markets, you may be wondering what’s next. Becoming an Accredited Investor or Qualified Purchaser can give you access to private investments that go beyond traditional assets, allowing you to further diversify your portfolio and potentially enhance your returns. Private investments don’t replace your current public holdings, but add another layer of growth potential. With the ability to outperform public markets by 3% or more, private markets can offer the diversification and sophistication your portfolio needs to evolve.

Does this sound appealing? You may be among the 1 in 5 U.S. households that qualify for Accredited Investor status. Read on to learn what it takes to become an Accredited Investor or Qualified Purchaser.

What is an Accredited Investor?

There are several ways an individual or a household can qualify as an Accredited Investor. If you are a United States tax payer, you and/or your household should meet one of the following criteria:

• Income: >USD $200,000 annually for individuals or >USD $300,000 for joint status with a spouse.

• Net Worth: >USD$1 million, excluding primary residence, individually or jointly with a spouse.

• Licenses: You hold a Series 7, 65, or 62 license

If you are in Singapore, you and/or your household should meet one of the following criteria:

• Minimum income of S$300,000 in the last year

• Net personal assets exceeding S$2 million, of which the net value of your primary place of residence can only contribute up to S$1 million

• Net financial assets exceeding S$1 million

• Find out more about accredited investor status in Singapore.

It is exciting to reach accredited investor status because it opens up significant opportunities to grow your wealth via exclusive, sophisticated investments, such as hedge funds, venture capital, and private equity. Many of them are funds that are exempt from the Securities and Exchange Commission registration, which means that they can operate with more flexibility, including the strategies they pursue, the types of assets they invest in, and how they manage risks. These funds often pursue complex strategies and invest in less liquid, riskier assets, but they also offer the potential for higher returns and unique diversification opportunities. Navigating private investments can be complex, but with Arta’s team of private market experts and direct access to fund managers, we make sure you can invest confidently and align each opportunity with your financial goals.

What is a Qualified Purchaser?

To become a Qualified Purchaser in the United States or Singapore, you and/or your household needs to have USD$5 million or more in investments or joint investments, excluding the value of your primary residence or business property. Investments can include:

• Stocks

• Bonds

• Mutual funds

• Cash or cash equivalents

• Real estate (excluding primary residence)

Qualified purchasers have access to a broader range of investment opportunities, particularly funds that usually only open up to institutional investors.

Why invest in private markets?

Private markets have gained popularity in recent years, largely because companies are staying private longer. A decade ago, the median age for companies going public was 6.9 years; in 2024, it’s 10.7 years. This extended timeline creates opportunities for investors to access high-potential returns through private equity or venture capital funds before companies go public.

At Arta, we take a rigorous approach to evaluating every investment opportunity that comes across our desk. Beyond complying with regulatory requirements, our team evaluates the investment strategy of each fund, ensuring it is well-aligned with latest market opportunities. We also conduct thorough due diligence to ensure that each fund consistently delivers on its stated objectives and operates with integrity.

I’m an Accredited Investor or Qualified Purchaser. What’s next?

As an Accredited Investor or Qualified Purchaser, you’ve unlocked access to exclusive investment opportunities. Arta makes it easy to take advantage of these opportunities by offering private market investments with low fees starting at 0.5% and minimum investments as low as $2,500 (for US investors) and $10,000 (for global investors via Singapore). You’ve worked hard to achieve this status—now is the time to explore the unique options available to you.

Set up your free account to explore new opportunities or meet our team at the next webinar.