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For the average investor, it may be enough to know that you buy a share of the company and you have a proportional share of that company. As the value of the company goes up, so does your share price. Some companies offer dividends (payments to shareholders on profits of the company), which may be paid out to the investor or reinvested to purchase additional shares if the investor chooses to do so.
For more savvy investors, it may be helpful to understand MiC’s fund structure as a management company. Funds are set up to aggregate investment dollars which are used to purchase companies (portfolio companies), in whole or in part, that are expected to produce above-average returns.
A typical private equity fund has a fund manager, General Partners (GPs), and Limited Partners (LPs). There are management fees of 2-3% of the assets under management (AUM) per year, and there are carry fees (paid to the GP) of 20-30% based on the performance of the fund. These fees can really eat into an investor’s profits.
Private equity funds also have barriers to entry with minimum investor requirements. These requirements include investment minimums most often in the tens of millions. Some go as low as $250k. Investors must also be accredited to invest in a private equity fund. That means they must have over $1M in net worth or more than $200k in earned income for at least two years. These requirements make investments in the private equity world unattainable to the average person.
Myo Impact Company is different. We have a fund structure without the private equity fund. It removes the fees and the minimum investor/investment requirements. This means that a private investment in healthcare is now open to anyone.
Have a voice in your healthcare.
