Re:The SEC “Modernizes” the Accredited Investor Definition
by fakedang on Thursday November 19, 2020 @02:54PM
(#25153649)
In my experience, partners at these firms won't even let junior firms invest in the fund. There is a clear cut pyramid hierarchy, and if admitting junior members means having to expand the AUM (thus crossing the threshold of the fund's strategy), I don't see this change being any meaningful to letting junior members invest.
For guys at mega funds, it's going to be really easy. For people in prop shops? Not that much.
Depends on the investment firm in question. There are many prop trading and HFT firms that essentially never lose money and consistently return 100%+ on invested capital. Junior employees often can't invest in the strategy because they don't meet the accredited threshold. It'd be pretty to hard to argue that this is doing them a favor.