What Is an Accredited Investor?
An accredited investor is a person or entity that meets specific financial, professional, or organizational criteria under federal securities laws. Accredited-investor status can determine who is eligible to participate in certain private investment opportunities.
Rise Capital Group presents private investment opportunities intended for verified accredited investors. Meeting an accredited-investor standard does not mean an investment is appropriate for you or that its outcome is assured.
Private investment opportunities only. This is not an employment opportunity.
Accredited Status Is an Eligibility Standard.
Federal securities laws require securities to be registered with the Securities and Exchange Commission unless an exemption applies. Certain exemptions, including Rule 506(c) of Regulation D, permit participation by verified accredited investors.
Accredited-investor status is based on standards established under Rule 501(a) of Regulation D. Individuals may qualify through income, net worth, certain professional credentials, or specific relationships to an issuer or private fund. Some businesses, trusts, financial institutions, and other entities may also qualify.
Accredited status is not an endorsement of an investment. It does not mean an investment is suitable, protected from loss, or expected to produce a return.
An Individual May Qualify in More Than One Way.
Income
An individual may qualify with income exceeding $200,000 in each of the two most recent years and a reasonable expectation of reaching the same income level in the current year.
An individual may also qualify with joint income exceeding $300,000 with a spouse or spousal equivalent in each of the two most recent years and a reasonable expectation of reaching the same joint income level in the current year.
Net Worth
An individual may qualify with a net worth exceeding $1 million, either individually or jointly with a spouse or spousal equivalent.
The value of the individual's primary residence is generally excluded from the net-worth calculation. Certain debt connected to the primary residence may still affect the calculation.
Net worth is generally calculated by subtracting total liabilities from total assets, subject to the rules concerning a primary residence and related debt.
These are summaries of common individual qualification pathways, not a complete legal definition. Eligibility should be evaluated using current law and the applicable offering documents.
Your Primary Residence Is Generally Excluded.
When an individual relies on the net-worth standard, the value of their primary residence is generally not counted as an asset.
Debt secured by the primary residence may receive different treatment depending on the property's value, the amount of the debt, and whether certain debt was added shortly before the investment.
Qualification and Verification Are Not the Same Step.
A person may believe they meet an accredited-investor standard, but a Rule 506(c) offering requires the issuer to take reasonable steps to verify accredited-investor status.
Self-certification by checking a box may not be sufficient by itself.
Depending on the qualification pathway, verification may involve documentation or written confirmation from an eligible third party.
- 01
Identify a Qualification Pathway
Determine which income or net-worth standard may apply.
- 02
Provide Verification
Follow the verification process required for the specific offering. This may involve financial documentation or written confirmation from an eligible professional.
- 03
Review the Offering
Accredited-investor verification determines eligibility. It does not replace due diligence or determine whether an investment is appropriate.
Do not submit tax returns, bank statements, brokerage statements, credit reports, identification documents, or other sensitive financial records through the general Rise Capital Group contact form.
Being Eligible Does Not Remove Investment Risk.
Accredited-investor status determines whether a person or entity may be eligible to participate in certain private offerings. It does not establish that a particular investment is appropriate for that investor.
Private investments can be speculative, illiquid, and difficult to value. They may involve operational risk, market risk, commodity-price risk, delays, additional expenses, and the possible loss of the entire investment.
Prospective investors should review the applicable Private Placement Memorandum and related offering documents, conduct independent due diligence, and consult their own legal, tax, financial, and investment advisors.
Explore the Available Information.
If you believe you may qualify as an accredited investor and would like to learn more about Rise Capital Group's private investment opportunities, review the available information or request a conversation.
Investment inquiries only. Employment inquiries should not use the prospective-investor contact form.
This page is provided for general educational and informational purposes only. It is not legal, tax, financial, or investment advice and does not determine whether any person or entity qualifies as an accredited investor. Accredited-investor standards, verification requirements, and their interpretation may change. Any offering will be made only through the applicable Private Placement Memorandum and related offering documents. Investing involves risk, including the possible loss of your entire investment.