When developers raise capital for a commercial real estate (CRE) project, they rely on multiple funding sources. Understanding where your investment fits within the “capital stack” will help you assess the level of risk you are assuming. Imagine the capital stack as layers necessary to fund and operate a CRE venture. The higher your position in the stack, the lower your comparative risk....
Our parent company has decades of experience structuring private credit for investors, so we sourced a few suggestions for those looking to capture high returns by lending money to companies. Several years ago, a small import/export consumer goods company approached us to raise capital to build inventory. In the course of conducting our due diligence, we discovered that the owner of the...
Why Direct Private Investing (DPI)? More and more family offices are including Direct Private Investing in their overall investment portfolio. DPI means investing directly in the equity or debt of a private company (the “issuer”). Thus, the investors have complete control over what issuers they support, and the returns from the investment are specifically tied to the performance of those...
We get calls every week about another alternative investment opportunity. Maybe you do, too. Before investing in alternative investments, it might help to understand certain limitations and challenges in doing so. Complexity of Alternative Investments: Alternative investments are not cookie-cutter securities. Yes, on the surface, they might appear similar. But each offering can be complex on...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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