When conducting Carofin’s and its affiliate's due diligence on a prospective issuer (and consequent private offering), Carofin’s investment bankers and analysts follow a process that has been codified over the last 30 years. The following Due Diligence Checklist is our template that we’re delighted to share....
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...
Would you expect a pro football player to become the CEO of a successful cosmetics company? We didn't. But, then, we listened to his story. And it made sense. This is an interview by Bruce Smith, Carofin’s Vice President of Investor Development, with Chris Kolodziejski, CEO and Founder of Mosaic Distributors, a developer and distributor of fine eye and brow makeup that does business under the...
Consistency is critical in our business. When it comes to investment analysis, this “First Principle” – “What primary market opportunity is the issuer pursuing?” – is the first question successful investors apply in their consistent approach to company analyses. Identifying the fundamental rationale for an enterprise is central to helping retain your focus on the ball. It’s what we consider...
We all have challenges to overcome. But, when it comes to private investments, understanding the challenges a business must overcome in order to capture a market opportunity is fundamental when considering an investment in that company. In our series of articles on First Principles, we show you how to easily define the basic elements of a business’s inherent value proposition. What is the market...
They all use something called First Principles to simplify complex problems. We use them for analyzing private investment opportunities. You might be surprised at how simple, yet effective, it can be. Investment analysis can be highly challenging. Each Issuer of securities (the company seeking your investment) is likely rather unique and is different from the previous company you analyzed....
To provide value (and generate income as an individual or a business), you need to solve a problem for someone. It’s actually why we get out of bed every day and go to work. If a company you’re looking to invest in doesn't do the same, it’s likely that company will fail. In this series of articles on First Principles, we show you how to easily define the basic elements of...
It may seem clear at first – your tenant (Jeff) signed an iron-clad lease. Now, he hasn’t paid rent for 2 months. So, do you go through the time-consuming (and, oftentimes, expensive) process of an eviction, hoping you land a new (paying) tenant quickly, or is it more reasonable for you try to fashion a deal — one that never was envisioned in the rental agreement? Suddenly, what had seemed...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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