“Family clients” are family members (including spousal equivalents), former family members, and certain key employees of the family office, as well as certain of their charitable organizations, trusts, and other types of entities. A person who receives assets upon the death of a family member or key employee (i.e., a beneficiary) also qualifies as a [...]

In general, family offices are entities established by wealthy families to manage their wealth, plan for their families’ financial future, and provide other services to family members. Specifically, “family office” is defined under the Investment Advisers Act of 1940 as a company that: has no clients other than family clients is wholly owned by family [...]

All investments are assets but not all assets are investments. Assets are “acquired” and owned, while investments are “made” and owned. The intent of an investment is appreciation of value over time. You may own real estate as an asset, but you may also invest in that same real estate with the intent of making [...]

An “investment” is an allocation of money or capital with an investment purpose and an expectation of generating a return.  For purposes of the accredited investor definition, the SEC refers to the existing definition of investments under Investment Company Act of 1940, which includes, among other things, the following items held for investment purposes: securities (with [...]

“Assets” are things that have value and that an individual or an entity owns or controls with the expectation that it will provide a future benefit. Assets include real property, physical property, financial assets, and intangible items. Real property is land and things attached to the land, like non-movable buildings. However, not all real property [...]

Yes. Joint income and assets may be included from “spousal equivalents” when calculating income and determining net worth. The SEC views a spousal equivalent as a cohabitant occupying a relationship generally equivalent to that of a spouse.

Non-U.S. investors should review the standards for their home jurisdiction. For example, the OSC web site contains the full definition of accreditation requirements that are also applicable to Canadian investors.  Canadian investors must generally also meet one of the following standards: Individuals who, either alone or with a spouse, have net assets of at least $5 [...]

Other options for an entity to qualify as an Accredited Investor include: a bank or savings and loan, an insurance company, an investment company registered under the Investment Company Act of 1940, a business development company, a Small Business Investment Company (as defined under Section 301(c) or (d) of the Small Business Investment Act of [...]

For entity investors, the SEC defines an accredited investor as: a corporation, partnership, LLC or other entity described in Section 501(c)(3) of the IRS Code, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5 million; a "family office" not formed for the purpose of acquiring the specific [...]

For individuals, accredited investors have historically been defined by the SEC as anyone who has: annual income of $200,000 or more (or $300,000 or more jointly with a spouse) in each of the last two years, and reasonably expects the same for the current year, OR has a net worth of $1 million or more [...]