Hi all With regard to bring classified as a "Sophisticated...

Hi all
With regard to bring classified as a "Sophisticated Investor" it really comes down to having assets in excess of $2.5m. The hardest part is having or cultivating connections with either Management and or a relationship with a broker who is leading the CR so you become invited to participate in the upcoming CR.

Basically companies use brokers etc to raise money cheaply and quickly. Generally the broker will charge a healthy fee to underwrite the CR but will also have confidence that their high net worth customers will participate in these CRs which are typically at a 15% discount to the average SP in the previous weeks trading. Sophs dont automatically get access to the company personnel.

Simply attending the pre covid presentations by companies will allow access to the CEOs at the breaks. This is a great way to speak to a CEO who would be unlikely to take a phone call when he is back at work

Its not rocket science but being "known" or having "connections or relations" with the companies certainly helps. I have participated as a Soph probably 10 times and it gives you a slight buy in advantage. It is no guarantee of future profits so you need to have researched the companies very well.

It has taken me many many years to cultivate these relationships and I am not really a high net worth investor in the larger sense.

Hope this demystifies somewhat the Soph Investor subject.

Chrs W2