Investor type definitions
For individuals in the United States, accredited investors include:
- Natural persons with a net worth (either alone or jointly with spouse) of over $1 million, excluding their primary residence;
- Natural persons who have an individual income over $200,000 (or $300,000 jointly with spouse) for the past two years, and such income is expected to continue;
- Natural persons who are licensed and in good standing with FINRA and holder either Series 7, Series 82 or Series 65 licenses; or
- Clients of a “family office” with total assets under management in excess of $5 million and possessing such knowledge and experience in financial and business matters that the family office is capable of evaluating the merits and risks of an investment in limited partner interests.
For entities in the United States, accredited investors include:
- A bank, savings and loan association, or other related institution;
- A broker or dealer registered with FINRA under the Securities Exchange Act of 1934;
- An investment adviser, either registered with the SEC or relying on an exemption from registration with the SEC under the Investment Advisers Act of 1940;
- An insurance company;
- An investment company registered under the Investment Company Act of 1940;
- A business development company;
- A Small Business Investment Company licensed by the U.S. Small Business Administration;
- A Rural Investment Company;
- An employee state, political subdivision, or agency pension plan with assets in excess of $5,000,000;
- A corporation, limited liability company, partnership, 501(c)(3) organization, or Massachusetts or similar business trust with total assets in excess of $5,000,000;
- A trust, with total assets in excess of $5,000,000; and
- An entity whose equity owners are all accredited investors.
For individuals in the United Kingdom and/or European Economic Area, accredited investors include:
Natural persons who satisfy two out of the following three criteria:
- the person has carried out transactions, in significant size, investing in investment funds focused on real estate at an average frequency of 10 per quarter over the previous four quarters;
- the size of the person’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500 000;
- the person works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of investing in investment funds; and
- the person has adequate expertise, experience and knowledge of investment funds focused on real estate such that they are capable of making investment decisions and understanding the risks involved.
For entities in the United Kingdom and/or European Economic Area, accredited investors include:
Entities which are required to be authorised or regulated to operate in the financial markets, including:
- credit institutions;
- investment firms;
- other authorised or regulated financial institutions;
- insurance companies;
- collective investment schemes and management companies of such schemes;
- pension funds and management companies of such funds;
- commodity and commodity derivatives dealers;
- local/ municipal authorities;
- other institutional investors;
Large undertakings meeting two of the following size requirements on a company basis:
- balance sheet total: €20,000,000
- net turnover: €40,000,000
- own funds: €2,000,000
National and regional governments, including public bodies that manage public debt at national or regional level, Central Banks, international and supranational institutions such as the World Bank, the IMF, the ECB, the EIB and other similar international organisations.
Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financing transactions.