Investor information
Who is an accredited investor?
Sterling & Oak Capital Partners only offers its private loan opportunities to accredited investors. When you confirm that you are accredited on a reservation form, you are relying on the definition in Rule 501(a) of Regulation D, issued by the U.S. Securities and Exchange Commission (SEC). This page summarizes that definition in plain language. You qualify if you fit at least one of the categories below.
Individuals
Most individual investors qualify under one of the first two tests.
Net worth over $1 million
Your net worth, alone or together with your spouse or spousal equivalent, exceeds $1,000,000. The value of your primary residence is not counted as an asset. Mortgage debt on it, up to the home's estimated value, is not counted as a liability.
Income over $200,000 (or $300,000 jointly)
You had individual income over $200,000, or joint income with your spouse or spousal equivalent over $300,000, in each of the two most recent years, and you reasonably expect the same level this year.
Certain professional licenses
You hold, in good standing, a Series 7, Series 65 or Series 82 securities license.
Insiders and private-fund employees
You are a director, executive officer or general partner of the company offering the securities, or a “knowledgeable employee” of a private fund that is offering them.
Entities
Trusts, companies and other entities can also qualify. In general, an entity cannot have been formed for the specific purpose of making this investment.
Entities with more than $5 million
A corporation, partnership, limited liability company, business trust or 501(c)(3) organization with total assets over $5,000,000, or an entity with investments over $5,000,000. A trust with total assets over $5,000,000 also qualifies if a sophisticated person directs its investment.
Entities owned entirely by accredited investors
An entity in which every equity owner is themselves an accredited investor.
Regulated institutions and family offices
Banks, savings and loan associations, registered broker-dealers, registered investment advisers, insurance companies, investment companies, business development companies and certain retirement plans. Family offices with over $5,000,000 in assets under management, and their family clients, can also qualify.
A pre-existing relationship is also required. Being accredited is necessary but not sufficient. Sterling & Oak offers its opportunities only to accredited investors with whom the firm or its principals already have a substantive relationship, in accordance with SEC Rule 506(b).
This is a summary, not the full rule. The complete and controlling text is in 17 CFR §230.501(a). For an overview, see the SEC’s investor.gov glossary entry on accredited investors.
This page is provided for general informational purposes only. It is not legal, tax or investment advice, and it does not constitute an offer to sell or a solicitation to buy any security. Whether you qualify depends on your own circumstances; consult your own legal and financial advisers if you are unsure.