Accreditation Requirements
Federal securities regulations require all participants in Rodeo Capital syndications to qualify as Accredited Investors under Rule 501 of Regulation D.
Statutory Authority: Securities and Exchange Commission (SEC) — 17 CFR § 230.501
Status: Current Standards
Key Statutory Safe Harbors & Rules
- Individual Income Test: $200,000+ ($300,000+ with spouse) for the past 2 years with expectations of the same
- Net Worth Test: $1,000,000+ in individual or joint net worth, excluding primary residence
- Professional Certification: Holders of active Series 7, Series 65, or Series 82 licenses in good standing
- Entity Qualification: Entities with $5M+ in investments/assets or where all equity owners are accredited
1. Natural Person Qualification Standards
An individual investor qualifies as accredited by meeting any ONE of the following criteria:
- •Annual Income: Earned income exceeding $200,000 individually (or $300,000 jointly with spouse or spousal equivalent) in each of the two most recent calendar years, with a reasonable expectation of reaching the same income level in the current year.
- •Net Worth: Net worth exceeding $1,000,000 individually or jointly with a spouse. In accordance with SEC regulations, the value of your primary residence is excluded from this calculation, and mortgage debt up to the estimated fair market value is not treated as a liability.
- •Professional Credentials: An individual holding in good standing a Series 7 (General Securities Representative), Series 65 (Licensed Investment Adviser Representative), or Series 82 (Private Securities Offerings Representative) license.
- •Knowledgeable Employees: Executive officers, directors, general partners, or advisory committee members of the offering issuer.
2. Entity Qualification Standards
Legal entities may participate in Rodeo Capital offerings if they meet any of the following standards:
- •Entities with $5M in Assets: Any corporation, partnership, LLC, or Massachusetts business trust with total assets exceeding $5,000,000, not formed for the specific purpose of acquiring the securities.
- •Trusts: Any trust with total assets exceeding $5,000,000, not formed for the specific purpose of investing, whose purchase is directed by a sophisticated person.
- •100% Accredited Ownership: Any entity in which ALL equity owners are individual accredited investors.
- •Family Offices: Family offices with at least $5,000,000 in assets under management and family clients of such offices.
3. Accepted Verification Documents
To satisfy the SEC Rule 506(c) verification requirement, you may provide:
- •A verification letter dated within the last 90 days signed by a licensed CPA, attorney, SEC-registered investment adviser, or registered broker-dealer.
- •IRS Forms W-2, 1099, or Schedule K-1 for the last two years plus written affirmation for the current year.
- •Bank or brokerage account statements dated within 90 days, accompanied by a recent credit report to substantiate net worth.
- •Third-party electronic passport verification via our verified compliance partners.
4. Confidentiality & Data Security
All verification documents submitted are processed through encrypted, SOC-2 compliant infrastructure. Rodeo Capital never sells or shares your personal or financial records.
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