Being an accredited investor in the US means having a net worth of $1M as well as income surpassing $200,000 for the past two years. Having that title enables you put your money in investments that are out of reach from the general populace, such as angel investing, hedge funds, equity crowdfunding and other alternative investments deemed too risky for average investors by US financial regulators (and most other major global regulators). But, just because someone qualifies as an accredited investor doesn’t mean they will gain access to hot deal flow. Among larger hedge funds, firms often have minimum thresholds in the millions of dollars which prevent just anyone from being able to invest in their funds.
Launching this month, and providing a solution for accredited investors to have access to hedge funds beyond most individual’s reach is Sliced Investing. Founded by Mike Furlong and Akhil Lodho who come with experience from Citi, Sliced Investing offers accredited investors the ability to combine their funds together to invest in hedged funds with high minimum thresholds if investing. Hedge funds offered in the system are partners with Sliced Investing; thereby providing a pre-approved opportunity to invest in the funds once the combined aggregated sum of the accredited investors reaches threshold minimums. While not a broker-dealer, Sliced Investments operates what is similar to an investing marketplace, as it uses technology to match prospective investors with hedge funds.
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For account holders, once approved as an accredited investor, Sliced Investments provides them a list of investment opportunities to allocate and commit their funds to, with minimums starting at $20,000. Upon a minimum threshold being met, account holders are notified by Sliced Investments, at which time they are sent the proper paperwork to fill out and finalize their funding in the investment. Once funded, Sliced Investments provides analytics tools for continual monitoring of a customer’s funds. For their part, Sliced Investments plans on being compensated by receiving a small percentage of customer profits in investments they have funded using their platform.