ACCREDITATION VERIFICATION PROCESS
Step One: To invest in any Regulation D direct participation programs offered by our affiliates, you must meet requirements detailed below. You will then be designated as an “accredited investor” as defined under Rule 501(a) of Regulation D of the Securities Act of 1933.
- A natural person whose individual net worth, or joint net worth with his or her spouse, at the time of his or her purchase exceeds $1,000,000 (excluding the value of such natural person’s primary residence);
- A natural person who has an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
- A natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the Securities and Exchange Commission (“SEC”) has designated as qualifying from time to time. The currently recognized professional certifications or designations or credentials can be found on the SEC’s website.
- A corporation, partnership, limited liability company, a Massachusetts or similar business trust or an organization described in Section 501(c)(3) of the Internal Revenue Service Code with total assets in excess of $5,000,000 that was not formed for the specific purpose of investing in the Partnership;
- A personal (non-business) trust, other than an employee benefit trust, with total assets in excess of $5,000,000 that was not formed for the specific purpose of investing in the Partnership and whose decision to invest in the Partnership has been directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the investment;
- An entity licensed, or subject to supervision, by U.S. federal or state examining authorities as a “bank,” “savings and loan association,” “insurance company,” or “small business investment company” (as such terms are used and defined in Rule 501(a) of Regulation D as promulgated under the Securities Act) or is an account for which a bank or savings and loan association is subscribing in a fiduciary capacity;
- An entity that is registered with the U.S. Securities and Exchange Commission as a broker or dealer or an investment company, or that has elected to be treated or qualifies as a “business development company” (within the meaning of Section 2(a)(48) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), or Section 202(a)(22) of the Investment Advisers Act of 1940, as amended (the “Advisers Act”));
- An investment adviser registered pursuant to Section 203 of the Advisers Act or registered pursuant to the laws of a state;
- An investment adviser relying on the exemption from registering with the SEC under Section 203(l) or (m) of the Advisers Act;
- A Rural Business Investment Company as defined in Section 384A of the Consolidated Farm and Rural Development Act;
- A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
- An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), if (i) the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company or a registered investment advisor, (ii) the employee benefit plan has total assets in excess of $5,000,000, or (iii) the employee benefit plan is a self-directed plan, with investment decisions made solely by persons that are accredited investors;
- A family office, as defined in Rule 202(a)(11)(G)-1 of the Advisers Act (i) with assets under management in excess of $5,000,000, (ii) that is not formed for the specific purpose of investing in the Partnership, and (iii) whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment;
- A family client, as defined in Rule 202(a)(11)(G)-1 of the Advisers Act of a family office meeting the requirements above and whose prospective investment in the Partnership is directed by such family office pursuant to the above item;
- An entity in which each of the equity owners qualifies under items #1, #2, or #3 as listed above.
- An entity of a type which does not satisfy any of the criteria set forth above, not formed for the specific purpose of investing in the Partnership, owning investments, as defined in Rule 2a51-1(b) of the Investment Company Act, in excess of $5,000,000.
Step Two: Before your investment will be accepted, you will be required to provide one of the following from either Section 1 or Section 2 below:
- Third party verification – an attestation form will be provided and must be signed by one of the following verifying that you meet one or more of the required accreditation criteria:
- Bank or other financial institution
- Financial Adviser
- Documentary evidence of Self-Verification — please provide one of the following items showing net worth of $1 million or meeting the required income requirements:
- Bank statement, brokerage statement, evidence of certificates of deposit, tax assessments
- Copies of any IRS forms that report income: W-2, Form 1099, Schedule K-1, Pages 1–2 of filed Form 1040 for the two most recent years with the expectation of same income level for current year.
- Signed balance sheet or income statement
- Proof of Certification, Designation, or Investor/Business status.
IF YOU HAVE QUESTIONS OR NEED ASSISTANCE PROVIDING ANY OF THESE ITEMS, PLEASE CALL OUR OFFICE AT 913-428-8278 AND WE WILL BE HAPPY TO ASSIST YOU.