Am I An Accredited Investor?

Private alternative investments that were once exclusive to rich and elite investors are gaining momentum and going mainstream.

What’s the appeal of alternative investments?

Because certain alternative investments offer the potential for higher returns at lower levels of volatility – alternative investments like private equity and passive income real estate funds.

Unlike the stock market, the private markets aren’t open to everyone.

To protect investors looking to invest in the private markets, most private investments are restricted to Accredited Investors who the SEC deems sufficiently sophisticated in investment and financial matters to understand risk and to absorb a loss of their investment.

How do I know if I’m an Accredited Investor?

Up until recently, if you fall within one of the following categories, you would meet the definition of an Accredited Investor:

For those who don’t meet the net worth or income requirements, you may still qualify as an accredited investor.

Did you know the SEC is about to expand the definition of an Accredited Investor?

Effective December 8th, an amendment to the definition will allow investors to qualify as Accredited Investors based on defined measures of professional knowledge, experience, or certifications in addition to the existing income and net worth tests.

These include persons holding Series 7, Series 65, and Series 82 securities licenses as well as persons with certain professional certifications such as doctors and lawyers. This doesn’t completely open the floodgates but it’s a step in the right direction.

Why is the SEC expanding the definition of an Accredited Investor?

It wants to open access to private markets. Based on its research, the SEC recently issued a report on private placements and found that in the hands of the right managers, private had the potential to outperform public equities by a wide margin at less risk.

One of the SEC’s directors, Dalia Blass, the Director of the Division of Investment Management at the SEC recently made a stunning suggestion: Main Street investors need more access to private markets.  

Why are private markets a big deal? According to Ms. Blass:

“Private investments have the potential to provide stronger returns and diversification for investors, but come with both performance and liquidity risks.”

What’s the big deal about private investments?

Anyone can buy stocks. As I’ve evolved in my investing career, I’ve realized that I don’t want to invest in something that’s in abundant supply that everyone can access.

To me, assets like stocks are in abundant supply and don’t offer the type of returns or security I seek in my investments. There are thousands of stocks out there and I don’t want to invest in something that people can go in and out of at the drop of a hat and drag my portfolio down with them.

I want to invest in something with limited supply, with limited access, and with investors with similar objectives. That’s why I target assets like real estate that’s in short supply in the private markets that are restricted to sophisticated investors that take their investments seriously.

That’s why being an accredited investor is a big deal.

Being an Accredited Investor opens up many more opportunities to invest in scarce alternative asset classes that deliver above-market returns at lower risk – providing cash flow and appreciation essential for building generational wealth.

There’s a whole universe of alternative assets available to Accredited Investors including:

Alternative assets like real estate have proven to provide better risk-adjusted annual returns over time than the S&P 500. That’s why qualifying as an Accredited Investor is a big deal.

Being an Accredited Investor not only opens up more investment opportunities but also higher-quality investments, particularly in the alternative investment class.

DISCLAIMER

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein.

THE OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM. THIS MATERIAL MUST BE READ IN CONJUNCTION WITH THE PRIVATE PLACEMENT MEMORANDUM IN ORDER TO UNDERSTAND FULLY ALL OF THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES ASSOCIATED WITH AN INVESTMENT IN THE SECURITIES TO WHICH IT RELATES AND MUST NOT BE RELIED UPON TO MAKE AN INVESTMENT DECISION.

The offering of securities described herein will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any state and the securities are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such laws. Neither the Securities and Exchange Commission nor any other federal or state agency has passed upon the merits of or given their approval to the offering of the securities, the terms of the offering or the accuracy or completeness of the offering materials. The offering of securities is being made only to Accredited Investors, as defined in Rule 501(a) of Regulation D of the Securities Act. An investment in the securities is highly speculative and involves substantial investment and tax risks. All prospective investors must review the Private Placement Memorandum in its entirety, including the section entitled “RISK FACTORS” before investing.

An investment in Four Peaks Capital Partners, LLC is highly speculative and involves substantial risks, including, but not limited to: (1) Four Peaks Capital Partners, LLC success depends upon the performance of the Manager in managing Four Peaks Capital Partners, LLC and its investments, including decisions involving investment of Four Peaks Capital Partners, LLC’s capital and the acquisition and disposition of properties and there is no guarantee Four Peaks Capital Partners, LLC will raise enough capital to perform its investment objectives; (2) There can be no assurance that a prospective investor will receive any return on investment in Four Peaks Capital Partners, LLC and/or realize any profit on a prospective investor’s investment in Four Peaks Capital Partners, LLC and a prospective investor could lose all or a substantial portion of its investment; (3) The Manager has limited or no net worth and there can be no assurance that the Manager will have sufficient funds to meet its obligations to Four Peaks Capital Partners, LLC or to otherwise financially support Four Peaks Capital Partners, LLC; (4) The Class A members and Class B members have no power to take part in the management of Four Peaks Capital Partners, LLC and have limited voting rights and will not have the opportunity to evaluate or approve any of Four Peaks Capital Partners, LLC’s investments; (5) The Class A Interests and Class B Interests will be illiquid, and the transferability of the Class A Interests and the Class B Interests will be substantially restricted; (6) Four Peaks Capital Partners, LLC may not have the cash flow necessary to make distributions to its members; (7) Four Peaks Capital Partners, LLC will not diversify its investments and, therefore, the success of Four Peaks Capital Partners, LLC will be dependent upon the success of the properties; (8) There are substantial risks associated with real-estate investments and ownership of storage facilities and mobile home parks; (9) There are various potential conflicts of interest among the Manager and its Affiliates and their principals.
Investors must read and carefully consider the discussion set forth under the section entitled “RISK FACTORS” in the Private Placement Memorandum for a complete discussion of these and other risks pertaining to this investment.

These projections are speculative and based on specific assumptions, which, if incorrect, would cause the actual returns to differ materially from the projected returns. You should review the entirety of the assumptions and risks set forth in the Private Placement Memorandum.

Any underlying assumptions and any forward-looking statements herein may not be accurate, the projections herein shown may not occur, and actual results could differ materially due to risks and uncertainties that are beyond the Company’s ability to control or accurately predict. To the extent, the information in this communication conflicts with the information in the Private Placement Memorandum, the information in the Private Placement Memorandum shall govern.

The securities offered are an illiquid investment and involve a high degree of risk; Investors should be able to bear the loss of some or all of their investment. Investors should read and understand all of the risks and the entire Private Placement Memorandum before making a decision to invest. Past performance is no indication of future results and there can be no assurance that Four Peaks Capital Partners, LLC will be able to execute the investment objectives for the Properties or the Offering.

This material is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-inclusive and should not be relied upon as being all-inclusive.
Any capitalized terms used but not otherwise defined in this Presentation shall have the meanings set forth in the Private Placement Memorandum.

Any reference to “Four Peaks” “we” “our” or “fund,” regardless of capitalization, shall refer to Four Peaks Capital Partners, LLC, and its Affiliates.

For additional risks and disclaimers, visit https://www.fourpeakscapitalpartners.com
Four Peaks Capital Partners, LLC

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