Accredited Indians: Increasing the Flow of Private Equity into Indian Country as a Domestic Emerging Market
New Mexico State University - Department of Finance; Rice University - Jesse H. Jones Graduate School of Business
March 1, 2008
University of Colorado Law Review, Vol. 80, No. 285, 2009
U of Michigan Law & Economics, Olin Working Paper No. 08-002
Indian Country is America's domestic emerging market, and as in a number of emerging markets, many successful businesses in Indian Country are starving for expansion capital. The US Treasury estimates that the private equity deficit in Indian Country is $44 billion. While the handful of wealthier tribes might be logical investors in private equity funds deploying capital in Indian Country, the existing securities laws present a significant impediment. In particular, Regulation D of the Securities Act of 1933 does not treat tribes as "accredited investors," thus denying those tribes the ability to participate in the private equity market. Since there is no principled reason to exclude tribes from the list of accredited investors, this article makes the case for extending accredited investor status to tribes.
Number of Pages in PDF File: 42
Keywords: Indian Country, Private Equity, Emerging Market
JEL Classification: Z10
Date posted: March 18, 2008 ; Last revised: January 24, 2010
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