Accredited investor
An investor meeting the income, net-worth, licence or entity tests of Rule 501 of Regulation D.
- Reg D · Rule 506(c)Offering exemption permitting general solicitation when all purchasers are accredited investors and the issuer takes reasonable steps to verify their status.
Questions that involve Accredited investor.
Who is an accredited investor?
Rule 501 includes several individual and entity categories. Individual examples include income above $200,000 ($300,000 with a spouse or spousal equivalent) in each of the prior two years with the same reasonably expected this year, net worth over $1M excluding a primary residence, and certain professional credentials in good standing. Entity tests depend on the category and additional conditions. A form response alone does not establish eligibility.
What is Regulation D, Rule 506(c)?
Rule 506(c) permits general solicitation, provided all purchasers are accredited investors and the issuer takes reasonable steps to verify that status. The Fund is offered under Rule 506(c). An inquiry form or self-certification alone does not complete verification.
How does Reg CF differ from Reg D?
Regulation Crowdfunding lets issuers raise up to $5M a year from the public through a registered funding portal, with investment limits for non-accredited investors. Regulation D offerings are private placements, chiefly to accredited investors.
Who can invest?
Accredited investors only. The Fund is offered under Regulation D, Rule 506(c).
From: Regulation & eligibility · Investment
Definitions are provided for reference and are not investment, legal or tax advice. Any offer is made only by the Fund's confidential Private Placement Memorandum.