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Non Accredited Investors

What is an 'Accredited Investor'?

The Securities and Exchange Commission (SEC) is an independent federal regulatory agency in the U.S. responsible for administering federal securities laws. The SEC oversees securities exchanges, brokers, dealers, investment advisers, and mutual funds, working to prevent fraud and market manipulation. An Accredited Investor is an individual or entity that meets specific financial or professional requirements set by the SEC, which allows them to participate in certain private market securities offerings that are typically unregistered with the SEC. This designation ensures that these investors are either financially sophisticated enough to evaluate the risks and merits of an investment or have the financial capacity to absorb potential losses, thus not requiring the regulatory protections mandated for public offerings.

- For natural persons (individuals), the most common ways to qualify are by meeting one of the following criteria:

- Having an individual net worth (or joint net worth with a spouse or spousal equivalent) exceeding $1 million (excluding the value of the primary residence).

- Having an individual annual income exceeding $200,000 (or $300,000 joint income with a spouse or spousal equivalent) in each of the two most recent years, with a reasonable expectation of the same for the current year.

- Holding in good standing certain professional certifications, designations, or credentials (such as Series 7, 65, or 82 licenses).

 

How do I know if I am an Accredited Investor?

An individual can be certain of their status as an Accredited Investor by confirming they meet at least one of the specific criteria outlined by the SEC under Rule 501 of Regulation D. This is essentially a self-assessment against set financial thresholds or professional qualifications. To meet the financial criteria, an individual must either have a net worth over $1 million (individually or jointly with a spouse or spousal equivalent), explicitly excluding the value of their primary residence, or they must have had an annual income exceeding $200,000 (or $300,000 jointly) in each of the two most recent years and reasonably expect to earn the same this year. To verify net worth, one must calculate all assets and subtract all liabilities, ensuring the remainder is greater than $1,000,000. Income verification involves reviewing tax documents from the past two years. Alternatively, an individual qualifies based on professional standing by holding a Series 7, Series 65, or Series 82 license in good standing, or by serving as a Director, Executive Officer, or General Partner of the company issuing the securities. An individual is not an accredited investor if they fail to meet any of these specified tests. Ultimately, while it is a self-assessment, Rowland Capital Partners will take steps to verify this accredited status before allowing participation.

 

How do I know if I am an Accredited Investor?

An individual can be certain of their status as an Accredited Investor by confirming they meet at least one of the specific criteria outlined by the SEC under Rule 501 of Regulation D. This is essentially a self-assessment against set financial thresholds or professional qualifications. To meet the financial criteria, an individual must either have a net worth over $1 million (individually or jointly with a spouse or spousal equivalent), explicitly excluding the value of their primary residence, or they must have had an annual income exceeding $200,000 (or $300,000 jointly) in each of the two most recent years and reasonably expect to earn the same this year. To verify net worth, one must calculate all assets and subtract all liabilities, ensuring the remainder is greater than $1,000,000. Income verification involves reviewing tax documents from the past two years. Alternatively, an individual qualifies based on professional standing by holding a Series 7, Series 65, or Series 82 license in good standing, or by serving as a Director, Executive Officer, or General Partner of the company issuing the securities. An individual is not an accredited investor if they fail to meet any of these specified tests. Ultimately, while it is a self-assessment, Rowland Capital Partners will take steps to verify this accredited status before allowing participation.

 

What if I'm not an Accredited Investor?

Rowland Capital Partners will only make Investments available to Accredited Investors. If you are not an Accredited Investor as explained on this page and, more importantly, as described in SEC Rule 501, you will not be able to participate in Rowland Capital Partners Funds at this time.