Interesting that they do say that in a newsletter but that is not what it says in the official prospectus (unless they have changed it or I am incorrect). How do they justify it though. Surely the start up costs of the fund such as advertising, legal, professional fees etc are the same whether they raise 10m or 50m so if they raise €10m, the costs will still be €750,000 or am I missing something?In newsletter on website, here is position;
The Directors confirm that the maximum deductions from all equity raised will be 1.5% representing the maximum capped set up costs at €750k as stated in the Prospectus for total equity raised of €50 million. For higher equity raised eg €100 million the effect of the cap is to drop this to 0.75%. For equity raised less than €50 million the set up costs will not be more than 1.5%. Therefore if you invest €10,000 the maximum deducted is €150 and will be lower if the total equity raised is over €50 million. This is used to cover all set up costs and professional fees. None of this money is paid to the Directors.