Institutional Accredited Investor

Definition:

An Institutional Investor that is an Accredited Investor under Rule 501(a) of Regulation D of the Securities Act, which includes: (i) financial institutions such as banks, insurance companies, registered Investment Companies, registered investment advisers, business development companies, small business investment companies, Rural Business Investment Companies as defined in Section 384A of the Consolidated Farm and Rural Development Act, Limited Liability Companies; (ii) employee benefit plans, charitable organizations, trusts or limited liability companies with total assets exceeding US$5 million; (iii) businesses in which all of the equity owners are Accredited Investors; (iv) any entity owning “investments,” as that term is defined in Rule 2a51-1(b) under the Investment Company Act, in excess of $5 million that is not formed for the specific purpose of acquiring the securities being offered; and (v) certain family offices and their family clients (so long as they are institutions) as defined under the Investment Advisers Act. Under the Securities Act, securities offered and sold to Institutional Accredited Investors may be exempt from the registration requirements of the Securities Act pursuant to exemptions provided by Regulation D.

Also referred to as IAIs.

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