Re:Private equity groups that buy companies they own
by wikfwikf on Thursday June 23, 2022 @06:27AM
(#31847157)
An accredited investor is one who has a certain amount of wealth, apart from their main residence. The SEC lays down the definition.
You need to be an accredited investor to invest, as an individual, in hedge funds, private equity, and some other similar things.
Re:Private equity groups that buy companies they own
by RC_ITR on Thursday June 23, 2022 @12:22PM
(#31851330)
Yeah, hence the joke.
Kim Kardashian is an accredited investor.
Re:Private equity groups that buy companies they own
by collegeburner on Thursday June 23, 2022 @09:05AM
(#31848493)
Lmao true for some of the AM guys I've met. But no it's an SEC designation of having a lot of money (so you aren't broke if you lose it) or proven knowledge (new rule so finance professionals who theoretically know what they're doing can invest).
Re:Private equity groups that buy companies they own
by nradov on Thursday June 23, 2022 @10:22AM
(#31849514)
A friend of mine also became an "accredited" investor through the simple expedient of lying on the form. Many financial services companies don't bother to verify investor income and assets.
Re:Private equity groups that buy companies they own
by collegeburner on Thursday June 23, 2022 @11:55AM
(#31850908)
It's not a matter of bothering, the ones that don't do general solicitation or are less than $150mm AUM don't have to actually verify. Which is good because LPs get mad when you ask them for tax returns.
Lol. Who’s accrediting them? 9/10 can’t make a 3-statement that foots.