Hedge Funds, Unicorns May Open to More Investors in SEC Plan (1)

U.S. regulators are poised to add new criteria for who’s considered a sophisticated investor in an effort to allow more people to invest in hedge funds or hot startups that have become known for raising billions of dollars outside of public markets.

The changes proposed by the Securities and Exchange Commission Wednesday would revise rules that determine who is an “accredited investor,” which qualifies them to buy into riskier, but potentially more lucrative, deals. Currently individuals must have a net worth of $1 million to be eligible for those investments.

The new SEC plan, adopted on a 3-2 party-line vote, ...