Managers should evaluate whether, and document how, each investor’s qualifications satisfy requisite legal standards appropriate to the structure of the fund, typically through subscription agreements.
[See also Section E1 (1)]

In addition to addressing the specific standards necessary for exemptions from registration under the Securities Act of 1933, the Investment Company Act of 1940 and other applicable U.S. and non-U.S. registration requirements, Managers should obtain representations from investors that the investor is likely to understand the material risks of investing in the fund, such as:

• an acknowledgement that the investor has received and understands the fund’s PPM and organizational documents, has had an opportunity to obtain additional information and ask questions of the Manager and is making an independent investment decision based on these documents and the investor’s independent investigation of the fund;
• an acknowledgement that the investor has the experience and knowledge in financial and business matters necessary to evaluate the merits and risks of the investment, is able to bear such risks and has obtained the information necessary to make this assessment with respect to such risks; and
• an acknowledgement that the investor understands the terms of its investment and the operation of the fund, including minimum investment, withdrawal rights, liquidity provisions, allocation and fee structure and other terms that the Manager thinks appropriate.