How about you back your friends with cash and they can pay you back within a month or two, with interest if you so wish. Seems like you are confident in their abilities. Also, can't they get a line of credit or something, for 5K? I can't imagine that most adults that are supposedly somewhat successful don't have access to 5K, one way or another. I'm not sure what other answer you're looking for. Lastly, if they have been good performers for their bosses as you said, inevitably they made some money themselves.
I don't think all responses were as you describe. Recall in your initial post you stated "These 2 guys who have been extremely profitable for the group for nearly a decade were told they would need to put in additional capital which they don't have." So I ask if they're "extremely profitable for nearly a decade" why don't they have any $$$ for additional capital? Any trader, prop or retail, should be intelligent enough to build up savings from their profitability over the years. To do otherwise suggests irresponsibility from a financial point of view IMO.
These are my feelings. This story does not meet the smell test and if the OP thinks it does he needs to toughen up on his sense of reality. People can have unexpected things happen and good fortune turn into bad. Caeser beat a lot of very good generals who had the bad fortune to be up against Caeser. The smell test. There is no grade -- it is pass/fail. This one fails.
sounds like complete BS.... although i know of several traders at a well known shop that have made $200k in 2005-2007 and don't have two nickels to rub together.... if they have some skin to put up...i'll back em.
A mid 20s person who has been profitable for 10 years? How many prop firms accept 14, 15, 16 year olds?
if i were these guys i would be hesitant to put up more capital whether i had it or not. it sounds like this firm is in trouble. if they both have positive accounts there's no reason the firm should change the rules and come to them for capital like that, that's bs. get outta that sinking ship and certainly don't put more money in it.
Their group leader had capital to back the traders. Many firms will require more risk deposit if you trade direct through them. However, you can also negotiate lower rates as you do not need to pay the overrides to the group leader.
I can match or beat the rates, but not the payout. At least not for fully backed. I'm in the Greenwich area, PM me if interested.