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Some financial companies are looking to open PE up to more people. I think the floor is still high - around $1M up front and $4M in liquid assets for additional
by giantg2 3y ago
Some financial companies are looking to open PE up to more people. I think the floor is still high - around $1M up front and $4M in liquid assets for additional funding (or something like that). I think there are some regulator restrictions on accredited investors. I would bet there's a legal loophole where you could group people into a mutual fund type structure but for private equity using some sort of legal entity.
- tadfisher 3y agoThe restriction is one of: $1 million net worth (excluding primary residence), or $250k/yr income. You meet that floor, you can buy private shares on secondary markets. I don't think it's a loophole to pool accredited investors into a company, it's called a private equity firm :)
- nradov 3y agoThe loophole is that regular people can become "accredited investors" by simply lying. In most cases no one actually checks the numbers they write down for assets and income. I am not recommending committing fraud here, but this is extremely common.
- immibis 3y agoThat's why you either die the hero or live long enough to become the villain: villain tactics *work* - that's why they do them!