Tag Accredited Investor

Private Equity and Hedge Funds

SEC Updates Definition of Accredited Investor

On August 26, 2020, the Securities and Exchange Commission adopted amendments to the definition of “accredited investor.” The amendments, among other things, added to the list of individuals who qualify as accredited investors.

Taylor Wilkins
September 3, 2020

Startups and Venture Capital

Verifying Accredited Investors in a Rule 506(c) Offering

Companies raising capital using Rule 506(c) have several options as to how to verify whether their investors’ are indeed “accredited investors.” This post describes some of the options companies have.

Taylor Wilkins
August 27, 2019

image of a number of investors interesting in a product

Private Equity and Hedge Funds

Accredited Investors vs. Qualified Clients vs. Qualified Purchasers: Understanding Investor Qualifications

Accredited investors, qualified clients, and qualified purchasers are three categories of investor qualification that are important to private fund managers. This post provides an explanation of the differences between them.

Alexander J. Davie
August 17, 2017

Startups and Venture Capital

Why You Can’t Really Include Non-accredited Investors in Rule 506 Offerings

One common misconception I encounter among startups is the idea that companies raising capital can include non-accredited investors in Rule 506[1] offerings. While it is technically true that a Rule 506 offering may include up to 35 non-accredited investors, what is…

Alexander J. Davie
August 31, 2015