Investing in venture capital funds, and more specifically emerging growth non-public companies, is of greater risk than publicly traded securities. Because ACM allows investors to select the individual companies to invest in, this risk can be more concentrated. We therefore have an investor suitability process that we follow.
ACM requires that every investor demonstrates sufficient knowledge and financial resources before investing in the Fund. This is accomplished through the completion of an investor questionnaire and financial statement.
ACM has the opportunity to earn a participation fee when the investor achieves a total return greater than the hurdle rate. This fund structure places ACM under SEC regulations that are different than those of an accredited investor. Every individual investor must have a minimum net worth of $2,000,000 (exclusive of equity in a primary residence) to invest in the Fund. There may be an income qualification.
It is a primary objective of ACM to build a long-term relationship with each investor. This requires commitment from both ACM and the investor. The Fund has a minimum initial investment of $50,000, which can be allocated to specific portfolio companies in $25,000 increments. Subsequent investments have a $25,000 minimum.