MicroEquities- Fund Manager IPO, page-15

[QUOTE="woollydog, post: 32198323, member:
I  qualify as a sophisticated investor based on annual income but don't want to invest $100K
with them all in one lump.
[/QUOTE]


Like I said there may well be 5-10% of the population who is technically a "qualified investors" however there is probably only 2% of those who are viable clients. i.e clients who have the ability to throw $100k in without bashing an eyelid.  

Many "qualified investors" are unviable as they may be asset rich/income poor. They may have high income but low amounts of free cash due to many reasons such high levels of property debt or like you are too risk adverse to throw in $100k at one time.

The high value clients who are there current client base also generally have the free cash on a monthly basis to throw in $20k-$50k a month no problems.

Anyway this is only a small company of less than 10 staff atm so there goal isn't to service millions of clients in Australia.

They really only want another 500 high value clients in the short/medium term.

Could they expand quicker by lowering thier investment minimums, probably but at what expense? Would investor returns deminish? I rather a small fund where the chief investment officer has in-depth knowledge of every holdings in the porfolpor.