Accredited Indians: Increasing the Flow of Private Equity into Indian Country as a Domestic Emerging Market

42 Pages Posted: 18 Mar 2008 Last revised: 24 Jan 2010

Gavin Clarkson

New Mexico State University - Department of Finance; Rice University - Jesse H. Jones Graduate School of Business

Date Written: March 1, 2008

Abstract

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.

Keywords: Indian Country, Private Equity, Emerging Market

JEL Classification: Z10

Suggested Citation

Clarkson, Gavin, Accredited Indians: Increasing the Flow of Private Equity into Indian Country as a Domestic Emerging Market (March 1, 2008). University of Colorado Law Review, Vol. 80, No. 285, 2009; U of Michigan Law & Economics, Olin Working Paper No. 08-002. Available at SSRN: https://ssrn.com/abstract=1107907 or http://dx.doi.org/10.2139/ssrn.1107907

Gavin Clarkson (Contact Author)

New Mexico State University - Department of Finance ( email )

PO Box 30001
MSC 3FIN
Las Cruces, NM 88003-3001
United States
575-646-3636 (Phone)

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

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