Investing FAQ

Who can invest with Edgewood Capital?

Both institutions and individuals are eligible to invest with Eligible institutional investors may include pension funds, family offices, banks, insurance companies, and non-profits. Individuals must be accredited investors as defined by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D.

An accredited investor, in the context of a natural person, includes anyone who:

  • earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year,OR

  • has a net worth of over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

  • On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.

    In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities whose purchase is directed by a sophisticated person, or

  • any entity in which all of the equity owners are accredited investors

  • In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

    How does the investment process work?

    The investment process is detailed on our “Investment Process” page.

    How does Edgewood Capital screen investments available to accredited investors?

    Edgewood Capital completes a rigorous due diligence process described on our “Due Diligence for Investors” page. This allows us to pass only what we believe to be the best deals to our accredited investors.

    Is there a minimum or maximum investment?

    The minimum investment available is generally $50,000, but may vary depending on the type and structure of an individual offering.

    What happens if the targeted capital raise amount is not fully met?

    In many cases, Edgewood will fund the deal prior to offering it to accredited investors, in which case, we will have sufficient funds to close the deal and still offer it to accredited investors.

    What if more money is needed for the investment after the initial funding period has ended?

    Edgewood reserves the right to make a call for additional capital should funding be required after the initial funding period of an investment. While accredited investors are not required to commit additional funds should there be a capital call, your ownership percentage may be diluted.

    If a borrower stops paying, what happens?

    Edgewood Capital Advisors is the servicer of all loans which collects payment and actively monitors each loan; they handle any loan modifications, loss mitigation options, and foreclosure proceedings should the situation require them.

    Should any significant changes occur on invested loans, will inform accredited investors. If a borrower fails to make payments under a loan, the loan will go into default and commence earning default interest (which will vary based on specific loan terms). Edgewood Capital Advisors will take the lead on pursuing a foreclosure proceeding to either take back the property, or recover the loan proceeds from the borrower and/or any guarantor of the loan.

    Do I have to pay a fee to invest with Edgewood Capital?

    There is no fee to join or to view investments. Edgewood does collect a servicing or management fee that will be deducted from investor earnings.

    What kind of updates will I get about my investment?

    Accredited investors will receive quarterly updates posted to the documents section of their user profile on

    When will I get my money back?

    If you invested in an individual deal offering, you will receive a return of capital upon payoff of the underlying loan by the borrower. While most borrowers payoff at maturity, some refinance earlier, while other loans allow for extensions. If you invested in a fund, returns will be issued as described in the offering memorandum pertaining to that particular fund.

    Can I sell my investment? Is there an exit strategy if I need to cash out an investment?

    These investments are not publicly traded and are illiquid securities involving an indefinite holding period. These investments are intended for investors who do not have a need for liquidity and can afford to lose their entire investment."

    While there is no active market for your investments, shares may be resold in private transactions subject to restrictions set forth in the offering documents of each specific deal and regulations of the SEC and applicable state securities laws.