Yes, there are certain limitations on who can invest in a Delaware Statutory Trust (DST). The primary limitation is that DSTs are generally only available to accredited investors. An accredited investor is someone who meets certain income or net worth requirements as defined by the Securities and Exchange Commission (SEC).
To be considered an accredited investor, an individual must have:
- An annual income of at least $200,000 (or $300,000 for joint income) for the past two years and a reasonable expectation of earning the same or higher income in the current year, OR
- A net worth of at least $1 million (excluding the value of their primary residence).
In addition to the accredited investor requirement, DSTs may also have minimum investment requirements, which can vary depending on the specific offering. It’s important to note that investing in DSTs involves risk and should be carefully considered by qualified investors who have a thorough understanding of the potential benefits and risks involved.