Know Your Buying Power Before You Invest
.01
Accreditation for Universal Safety and Success
Any type of investing or speculation carries some amount of risk. In most cases, complex investments, like oil and gas, development, real estate, etc., require direct participation from multiple investors. Requiring accreditation ensures that every investor involved is established enough to weather the storm should anything go awry.
Working with only accredited investors offers confidence and peace of mind to all parties. With Thoroughbred Ventures, the playing field is even, the risk is shared, and we’re all in this together.
Definition of An Accredited Investor
Someone who is an accredited investor has been classified by the U.S. Securities and Exchange Commission (SEC) to invest in more complex investments, like oil and gas. This investor status confirms that investors are in good standing from a financial perspective. They have access to liquid, flexible funds and assets that can be used for investing in complex and multifaceted investment opportunities. Non-accredited investors may not be able to tolerate high-risk investments.
Qualifying To Be An Accredited Investor: What Is The Criteria?
According to the SEC rules, the definition of an accredited investor has been expanded in recent years (2023), extending beyond just monetary capacity to include other participants, including:[1]
- “Natural persons” or Investors that meet the income requirement: At least two years of annual income must exceed $200,000 per person or $300,000 in joint income with a spouse (or spousal equivalent), with no expectation of change.
- Investors that meet the Net Worth Requirement: High-net-worth individuals with a net worth (assets minus liabilities) that exceeds $1 million per person or joint net worth with a spouse (or spousal equivalent) but does not include the value of a primary residence.
- Investors who hold certain Professional Certifications: Refers to specific professional certifications, designations, or credentials in relevant fields.
Investment Advisors: Some advisors may participate, including SEC- and state-registered investment advisors. - Knowledgeable Employees: Those who are well-informed about a fund.
Family offices with at least $5 million in total assets: Assets under management include clients. - Limited Liability Companies (LLCs): Must have at least $5 million in assets.
- Rural Business Investment Companies (RBICs): RBICs can participate.
- A range of entities owning at least $5 Million in investments: This includes First Nations and tribes, funds, government bodies, and some foreign entities.
- Any other entity with over $5 million in assets: This entity can not be formed expressly to acquire these securities.
.02
What Types of Investments Require Accredited Investors?
At Thoroughbred Ventures, we work only with accredited investors to ensure universal safety and success for everyone involved. Investments that require accredited investors include:
- Private Equity and Venture Capital: These investments are not publicly traded for new-growth companies or startups, private equity, angel investments, or venture capital funds.
- Private Placements: These are securities offered directly to accredited investors and not registered with the SEC.
- Hedge Funds: Investment funds that leverage complex trading strategies and risk mitigation tactics to enhance investment returns.
- Equity Purchase or Direct Investments: Buying a stake in private companies to become an equity owner.
- Real Estate Development: Partnerships or limited liability companies deploying shared funds for development.
- Private Debt Offerings: Loans offered without involving banks or a brokerage.
- Limited Partnerships (LPs): These investments are standard issue for natural resource projects, real estate, and many other types of private investing.
- Initial Coin Offerings (ICOs): Cryptocurrency or other digital token investment.
Additional Investing Resources
Disclaimer: No information provided here should be construed as a guarantee of profit or an offer to invest. There is always risk associated with prospecting and investing, and they represent some level of liquidity risk. Nor should this content be deemed tax advice or legal counsel. TBV works only with accredited investors, and those who meet the requirements should consult with personal or financial consultants before investing.
.03
Ready To Invest?
Join Forces With Thoroughbred Ventures
Our philosophy promotes data-backed, passion-driven projects and multifaceted opportunities that perform again and again. If you’re an accredited investor, we’d love to connect.
