Qualifications

What is an Accredited Investor?

An Accredited Investor is defined by the U.S. Securities and Exchange Commission (SEC) as an individual or entity that meets specific financial criteria, qualifying them to participate in private investment opportunities that are typically unavailable to the general public. These criteria ensure that those investing in private offerings have the financial knowledge and capacity to understand and manage the risks involved.

At BEO, our investment funds are structured as Regulation D, Rule 506(c) offerings, which are restricted to accredited investors. Below is a summary of the current criteria to qualify as an accredited investor:

Accredited Investor Requirements for Individuals

To qualify as an accredited investor, an individual must meet at least one of the following conditions:

  • Income Test
    Earn an annual income exceeding $200,000 (or $300,000 with a spouse or spousal equivalent) in each of the past two years, with the reasonable expectation of maintaining that income level in the current year.

  • Net Worth Test
    Have a net worth of more than $1 million, either individually or jointly with a spouse or spousal equivalent, excluding the value of the primary residence.

  • Professional Certifications
    Hold a Series 7, Series 65, or Series 82 license, or other approved financial credentials recognized by the SEC.

Accredited Investor Requirements for Entities

Certain entities also qualify as accredited investors, including:

  • Financial Institutions and Trusts
    Banks, insurance companies, registered investment companies, business development companies, and small business investment companies.

  • Entity Where All Equity Owners Are Accredited Investors
    If all equity owners within an entity meet the accredited investor criteria, the entity itself qualifies.

  • Entities with Total Assets Exceeding $5 Million
    Any entity with total assets exceeding $5 million, such as corporations, partnerships, or limited liability companies, provided the entity was not formed specifically for the purpose of investing in a particular offering.

  • Family Offices
    Family offices with at least $5 million in assets under management and their knowledgeable employees.