The term “wholesale investor” is defined under the Financial Markets Conduct Act of 2013 as an individual or entity (such as a company, trust, or partnership) authorised to participate in investment opportunities that are generally not accessible to the general public or retail investors. These opportunities often include early-stage companies and venture capital investments, which are considered higher risk and typically lack the extensive information or protective measures provided to retail investors for their safeguarding.

To be classified as a wholesale investor, one must meet specific criteria or fall within certain categories. Our investors usually fit into one or more of four primary qualifications, which can be summarised into two main groups:

1. Those possessing the necessary experience to comprehend and willingly take on the risks associated with their investments.
2. Those with adequate financial resources to seek professional advice if needed or to absorb potential financial losses.

The four main qualifications that our investors often rely on include:

1. Qualifying as a “Large Investor” by owning net assets or reporting a consolidated turnover of at least $5 million over the previous two fiscal years.

2. Being an “Investment Business,” meaning the investor’s main operation involves investing in financial products (like fund management), offering financial advice, or trading in financial products on behalf of others (e.g., brokers or wealth managers).

3. Satisfying the “Investment Activity” criteria, which applies to individuals who either own or have owned a portfolio of specific financial products (such as shares, bonds, derivatives, etc.) worth over $1 million in the last two years, or have been actively involved in the investment decisions of an investment business for a minimum of two years within the last decade.

4. Recognized as an “Eligible Investor” by having relevant prior experience in investing in financial products that enables them to evaluate the merits and necessary information for making informed decisions. This includes providing a declaration of understanding the implications of being deemed an eligible investor, which must be verified by a professional such as a lawyer, accountant, or financial advisor.

This explanation is provided in simple terms and should not be taken as advice on whether you qualify as a wholesale investor. If you are uncertain about your eligibility, it is advisable to consult with a professional advisor, such as an accountant or financial advisor.