Exploring benefit plan investors: What you need to know
For purposes of investing on EquityZen, a “Benefit Plan Investor,” as defined under Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and any regulations promulgated thereunder, includes:
an “employee benefit plan” that is subject to the provisions of Title I of ERISA;
a “plan” that is not subject to the provisions of Title I of ERISA, but that is subject to the prohibited transaction provisions of Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), such as individual retirement accounts and certain retirement plans for self-employed individuals; and
a pooled investment fund whose assets are treated as “plan assets” under Section 3(42) of ERISA and any regulations promulgated thereunder because “employee benefit plans” or “plans” hold 25% or more of any class of equity interest in such pooled investment fund.
Resources:
Investments Definition for purposes of section 2(a)(51) (definition of qualified purchaser)
“Investments” generally means the following:
Securities, including stocks, bonds and notes, other than securities of an issuer that is under common control with the qualified purchaser.
Real estate held for investment purposes.
Commodity futures contracts, options or commodity futures and options on physical commodities traded on a contract market or board of trade, held for investment purposes.
Physical commodities (e.g., gold and silver), with respect to which futures contracts are traded on a contract market or board of trade, held for investment purposes.
Financial contracts (e.g., swaps and similar individually negotiated financial transactions), other than securities, held for investment purposes.
For an investment company or a commodity pool, any binding capital commitments.
Cash and cash equivalents held for investment purposes. Neither cash used by an individual to meet everyday expenses nor working capital used by a business is considered cash held for investment purposes
Resources:
Section 2(a)(51) of the Investment Company Act: https://www.law.cornell.edu/uscode/text/15/80a-2
7 CFR § 270.2a51-1 - Definition of investments for purposes of section 2(a)(51) (definition of “qualified purchaser”): https://www.law.cornell.edu/cfr/text/17/270.2a51-1