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> PE LPs are all accredited and know what they're doing Lol. Who’s accrediting them? 9/10 can’t make a 3-statement that foots.
by RC_ITR 4y ago
> PE LPs are all accredited and know what they're doing
Lol. Who’s accrediting them? 9/10 can’t make a 3-statement that foots.
- wikfwikf 4y agoAn 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.
- deleted 4y ago[deleted]
- RC_ITR 4y agoYeah, hence the joke. Kim Kardashian is an accredited investor.
- collegeburner 4y agoLmao 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).
- deleted 4y ago[deleted]
- nradov 4y agoA 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.
- collegeburner 4y agoIt'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.
- RC_ITR 4y agoYeah hence the joke. Kim Kardashian is an accredited investor