Home/Investor - Accredited Investor

Who is a family client?

“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 [...]

By |2021-01-10T21:55:06+00:00January 10th, 2021||0 Comments

What is a family office?

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 [...]

By |2021-01-10T21:51:59+00:00January 10th, 2021||0 Comments

What is an investment?

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 [...]

By |2021-01-10T21:47:52+00:00January 10th, 2021||0 Comments

What is an asset?

“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 [...]

By |2021-01-10T21:46:42+00:00January 10th, 2021||0 Comments

Do non-U.S investors have to qualify as accredited investors as well?

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 [...]

By |2021-01-10T21:44:15+00:00January 10th, 2021||0 Comments

What other kinds of entities qualify as Accredited Investors?

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 [...]

By |2021-01-10T21:43:24+00:00January 10th, 2021||0 Comments

What Entities are Accredited Investors?

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 [...]

By |2021-01-10T21:41:32+00:00January 10th, 2021||0 Comments
Go to Top