Clearing the accredited investor threshold is the first structural gate on the path to Delaware Statutory Trust investing. The definition is specific, the regulatory basis is firm, and understanding both matters before any offering review begins.

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What Makes Someone an Accredited Investor

For individuals, the standard accredited investor definition rests on two possible criteria. The first is a net worth above $1 million, with the primary residence excluded from that calculation. The second is annual income above $200,000 as a sole filer, or $300,000 combined with a spouse, with a reasonable expectation that the same income level will continue into the current year.

For entities, the calculus differs. A qualifying entity either holds gross assets exceeding $5 million or is composed entirely of individuals who each meet the accredited standard independently.

These thresholds exist because private placements carry disclosure and liquidity characteristics distinct from publicly registered securities. Regulators treat accredited status as a proxy for the financial sophistication and loss-absorption capacity needed to participate in that category of investment.

Why DSTs Are Exclusively Accredited-Investor Products

Delaware Statutory Trust offerings are structured as Regulation D Rule 506(c) private placements. That classification means they sit outside public-market registration requirements and are legally available only to accredited investors. A Private Placement Memorandum governs the material terms of each offering, and subscription requires verified accreditation, not self-certification alone.

The securities-law treatment of DST interests flows directly from their structure. A beneficial interest in a DST is a security, and because it is sold in a private placement rather than a registered public offering, the issuer must restrict access to the accredited pool. There is no workaround or graduated participation tier. Accreditation is the entry condition.

Typical minimum investment levels reflect this investor profile. A standard DST minimum sits at $100,000, though individual offerings vary in their minimums.

The Investor Profile DSTs Attract

Looking at the actual distribution of DST marketplace participants clarifies who this product reaches in practice. Typical clients in DST marketplaces have invested amounts ranging from $50,000 to $5 million and hold net worths between $2 million and $20 million. A more focused view of transaction-level data shows common deal sizes in the range of approximately $200,000 to $2 million, with many investors relying on the income generated to fund ongoing living expenses.

That profile sits well above the baseline accredited threshold. The DST structure was built to bridge a specific gap: giving investors who fall short of direct institutional acquisition capacity access to the same asset class. A fractional interest in a Class-A multifamily building, an industrial distribution facility, or a medical office complex would require direct capital at eight or nine figures. DST structuring makes beneficial ownership accessible at a fraction of that outlay, while keeping the product appropriately restricted to investors who meet the accredited standard.

Secondary Market Access and Accreditation

Accredited investor status matters not only at initial subscription but also if an investor seeks to transfer a DST interest before the asset completes a full cycle. DST beneficial interests can be sold and transferred to other accredited investors prior to disposition. The most likely buyers in that scenario are existing investors already participating in the same DST or outside buyers who independently qualify as accredited.

This structure creates a secondary market that is functional but narrow. It is not a liquid public exchange. Any transfer must land with a buyer who meets the same accreditation standard that governed the original subscription. That constraint reinforces why understanding accreditation requirements at the outset matters: it defines both who can enter and who can absorb a position later.

What This Means

The accredited investor threshold is not administrative formality. It is the structural filter that determines whether any DST offering is legally accessible to a given investor. An individual who clears $1 million in net worth excluding primary residence, or who meets the income criteria, qualifies under the standard definition. Entities follow a parallel but distinct analysis.

Accredited investors map their situation against current offerings through the partnered broker-dealer's intake process. Confirm accreditation status first to proceed with any offering review.