Flow’s Special Purpose Vehicles are designed for accredited investors. In order to be considered an accredited investor as an individual, the SEC requires you to have:
- Individual net worth (or joint net worth with your spouse), excluding your primary residence, greater than $1,000,000
- Annual income greater than $200,000, or combined income with your spouse greater than $300,000, in each of the two most recent years, and a reasonable expectation of seeing at least the same level of income in the current year
Accreditation requirements are intended to ensure that investments involving higher amounts of capital or risk are accessible only to investors with a high level of financial sophistication. Accredited investors do not have to be individuals, however. Other ways in which the investing entity can qualify as an accredited investor include if the investor is a trust, employee benefit plan, or corporation with assets over $5,000,000; if the investor is a bank, insurance, or investment company; or if all equity owners of the investing entity are themselves accredited.
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