Legal
Disclaimer: The information below is provided for general informational purposes only and should not be interpreted as legal, financial, or investment advice. The definitions summarized here reflect current U.S. Securities and Exchange Commission (SEC) standards under Rule 501(a) of Regulation D and may change over time. Prospective investors should consult with their legal or financial advisors to confirm their individual qualification status before participating in any offering.
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.
These standards are used by private investment issuers to determine investor eligibility and verify qualification prior to participation in offerings conducted under Regulation D of the Securities Act of 1933.
Below is a summary of the current criteria to qualify as an accredited investor:
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.
Certain entities also qualify as accredited investors, including:
Entity Where All Equity Owners Are Accredited Investors: If all equity owners within an entity meet the accredited investor criteria, the entity itself qualifies.
Financial Institutions and Trusts: Banks, insurance companies, registered investment companies, business development companies, and small business investment companies.
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.
Knowledgeable Employees: Individuals who are “knowledgeable employees” of a private fund, as defined under the Investment Company Act, may qualify with respect to investments in that fund.
Registered Investment Advisers: Both SEC-registered and state-registered investment advisers (RIAs) qualify.
Rural Business Investment Companies (RBICs): Entities meeting the definition under Section 384A of the Consolidated Farm and Rural Development Act qualify.
Limited Liability Companies (LLCs): LLCs with assets exceeding $5 million qualify if not formed for a specific investment.
Certain Family Clients: Family clients of a qualifying family office may qualify, provided they are directed by the family office in connection with their investment.
Meeting the criteria above does not automatically qualify an investor to participate in any BEO Investments LLC opportunity. All participation is subject to applicable laws, investor verification, and completion of required documentation in connection with each specific offering. Definitions and thresholds may be updated by the SEC from time to time. This summary is based on U.S. federal definitions and may not reflect requirements applicable in other jurisdictions. Offers are made only in jurisdictions where permitted by law and to investors who meet all applicable qualification standards.
