Investor Education
Background on the terms and structures you'll encounter as a prospective investor with Apex Krish Capital.
What is an Accredited Investor?
An accredited investor is a person or entity permitted under U.S. securities law (Regulation D of the Securities Act) to invest in certain unregistered securities, including private equity and venture deals, without the disclosure protections required for public offerings.
An individual generally qualifies by meeting any one of these tests:
- Annual income of at least $200,000 ($300,000 with a spouse or partner) in each of the past two years, with a reasonable expectation of the same this year.
- Net worth over $1 million, excluding the value of a primary residence.
- Holding certain professional licenses in good standing (e.g., Series 7, 65, or 82).
- Being a “knowledgeable employee” of the fund in question, where applicable.
What is a Qualified Purchaser?
A qualified purchaser is a higher bar than accredited investor status, defined under the Investment Company Act of 1940. It's relevant because funds relying on the “3(c)(7)” exemption can accept an unlimited number of qualified purchasers, versus a 100-investor cap for accredited-investor-only (“3(c)(1)”) funds.
- Individuals: generally at least $5 million in investments (not counting a primary residence or business).
- Entities: generally at least $25 million in investments, or entities wholly owned by qualified purchasers.
Every qualified purchaser is, by definition, also an accredited investor — the reverse is not true.
What is Private Equity?
Private equity refers to capital invested directly into companies that are not listed on a public stock exchange. Unlike buying public stock, private equity investors typically commit capital for a multi-year horizon in exchange for equity ownership, with returns realized when the company is sold, recapitalized, or taken public.
Common private equity strategies include:
Capital for an already-profitable company to expand.
Capital for young companies with high growth potential and higher risk.
Acquiring a controlling stake in an established business, often alongside existing management.
Why Private Equity Investment?
A large share of a company's value appreciation tends to happen while it is still private — in the early and pre-IPO stages of its growth — rather than after it lists on a public exchange. By the time a company goes public, much of that early growth curve has often already played out, and public investors are frequently buying in after a large part of the value creation has occurred.
Private equity is also a way to reach companies that public markets simply don't offer: many category-leading businesses choose to stay private for years, or indefinitely, so an investor limited to public markets never gets access to them at all. For these reasons, private equity is often considered a valuable vehicle for long-term wealth building and a component worth having as part of a well-rounded portfolio.
Myth: Share Price Tells You the Valuation
A common misconception is that a low share price means a company is “cheap,” or that a high share price means it is “expensive.” The price of a single share, on its own, does not tell you a company's valuation.
A company's actual valuation is its share price multiplied by its total number of outstanding shares. Two companies can trade at very different per-share prices and have the exact same valuation, depending on how many shares each has issued.
When evaluating a private opportunity, focus on the overall valuation and what it implies about the business, not the per-share price in isolation.
What is an SPV?
A Special Purpose Vehicle (SPV) is a standalone legal entity — typically an LLC — created to pool capital from multiple investors for a single investment. Rather than each investor holding shares in the underlying company directly, investors hold an interest in the SPV, and the SPV holds the underlying investment.
SPVs simplify cap tables for the company being invested in (one line item instead of dozens of individual investors) and let a syndicate organize a group of investors around a specific deal, each contributing their chosen amount subject to the deal's minimum.
What is an Investment Syndicate?
A syndicate is a group of investors who pool their capital, typically organized by a lead sponsor, to invest together in opportunities that might otherwise be inaccessible to any single investor — whether due to deal size, relationship access, or minimum investment thresholds. Apex Krish Capital operates as a syndicate: we source, evaluate, and present opportunities, and interested accredited investors and qualified purchasers can choose to participate deal-by-deal through the associated SPV.
Key Risks of Private Investing
Private investments typically cannot be sold on a public market and may be held for many years before any exit.
Early-stage and private companies carry meaningfully higher failure rates than public equities.
Private companies are not subject to the same disclosure and reporting requirements as public companies.
Future funding rounds may reduce an investor's proportional ownership.
There is no public market price, so valuations rely on periodic estimates.
Our Due Diligence Approach
Before an opportunity is presented to our investor network, our team reviews the company's financials, capitalization table, market position, and management team, and negotiates terms on behalf of the syndicate. Full diligence materials for a given opportunity — financial statements, cap table, term sheet, and related documents — are made available to verified investors within the deal room.
Explore Active SPV Opportunities
Join accredited peers and review diligence materials for live allocations.