Mondrian Matters2

SOPHISTICATED INVESTORS AND HNWIs

SOPHISTICATED INVESTORS

A sophisticated investor is an investor that has sufficient capital and experience to independently evaluate the soundness of an investment opportunity, and invest in it.

In order to access specific deals, sophisticated investors may self-certify that they fit into at least one of the categories listed on the FCA Handbook. In particular, to be considered a sophisticated investor, you have to be one of the following:

(a) a member of a network or syndicate of business angels and have been so for at least the last six months;

(b) have made more than one investment in an unlisted company in the past two years;

(c) working, or have worked in the past two years, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

(d) be currently, or have been in the past two years, a director of a company with an annual turnover of at least £1 million.

HIGH NET WORTH INDIVIDUALS

High Net Worth Individuals (HNWIs) is a term used to designate people with a consistent investable wealth.

According to FCA Handbook, to be considered a High Net Worth Individual you must either:

(a) have, throughout the past financial year, an annual income to the value of £100,000 or more;

(f) held, throughout the past financial year, net assets to the value of £250,000 or more (excluding your primary residence, any insurance or pension).

Mondrian Matters2
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