Be Prepared: An Essential Guide To Private Investing

“Be Prepared” is the Boy Scouts’ official motto.  It was constantly drilled into my 11- to 18-year-old brain over 50 years ago as we planned our troop’s many camping trips   in the hills of eastern Kentucky.  And it has stuck with me                          More >

Be Prepared: An Essential Guide To Private Investing2023-11-29T11:15:29-05:00

The Power of Direct Private Investments: Opportunities, Inefficiencies, and Impact

Welcome to the Direct Private Investments Show, proudly presented by Carofin.  In today’s episode, we are discussing the potential benefits and challenges of direct private investments in the alternative investment space.  Joining us is Bruce Roberts, CEO and founder of Carofin.   What are Direct Private Investments? Direct private investments fall under the broader category of alternative investments, which often are presented in the form of funds that invest in More >

The Power of Direct Private Investments: Opportunities, Inefficiencies, and Impact2023-06-28T19:53:37-04:00

A Clearer Path to Private Investing: Carofin’s Unique Approach to Evaluating Issuers

As an accredited investor, you know that direct private investing can be a lucrative way to grow your portfolio.  However, with the vast array of investment opportunities available, how do you know which ones to choose?  At Carofin, an investment bank, we take a unique approach to evaluating issuers that we believe sets us More >

A Clearer Path to Private Investing: Carofin’s Unique Approach to Evaluating Issuers2023-05-31T09:47:08-04:00

Mastering Private Investing The “Right” Way

When planning to go grocery shopping, the odds of producing a memorable feast go up sharply when you’ve planned ahead.   A recipe, whether for meal prep or investing, can increase your chances of success.  As more and more people seek alternative ways to grow their wealth, direct private investments offer exciting opportunities for accredited More >

Mastering Private Investing The “Right” Way2023-05-31T14:12:46-04:00

Understanding How to Invest with Carofin

Introduction  Carofin works hard to make it easy for accredited individuals, family offices and institutional investors to open accounts and invest in direct private investments.  We will show you how easy it is to start, as explained by Julia Gray and Bruce Smith in a recent interview on The Direct Private Investments Show. Who Can More >

Understanding How to Invest with Carofin2023-05-31T14:05:44-04:00

Carofin: Important Personal Considerations in Private Placements

Carofin, a leading institution in direct private investments, sheds light on personal factors which should influence investors’ decisions about investing directly in private companies.  In a recent interview, Matt  Brown spoke with experts Garrick Ruiz and Nash Roberts, who shared their insights on what investors should consider when evaluating private investment opportunities. Garrick Ruiz, More >

Carofin: Important Personal Considerations in Private Placements2023-05-31T14:42:53-04:00

Demystifying Private Securities: Debt vs. Equity

In a recent episode of the Direct Private Investments Show presented by Carofin, Matt Brown and Bruce Roberts, a seasoned investor in both private equity and lending markets, demystify the world of private  securities.  This article explores the key differences between debt and equity and is featured in our latest video, Demystifying Private Securities: More >

Demystifying Private Securities: Debt vs. Equity2023-05-31T15:00:49-04:00

What are the Essential Components of a Good Deal 

Over the years, Bruce Roberts, CEO of Carofin, has evaluated thousands of investment opportunities.  He is frequently asked why one gets the thumbs up, where most others he passes on. What characteristics does he look for? In a recent episode of the Direct Private Investments Show, Bruce drew from 28 years of experience, sharing his insights on what makes a “good deal.”  The More >

What are the Essential Components of a Good Deal 2023-05-31T15:16:25-04:00

Why Carofin?

Any organization, if it’s destined to last, needs a leader who, as the saying goes, can’t lead from the rear. This article, taken from a wide-ranging conversation between Matt Brown and Bruce Roberts, Carofin’s CEO, from the Direct Private Investments Show, talks about leadership, Carofin’s origins, the evolution of commercial banking and venture capital, and touches on the reasons investors and issuers come to Carofin. You can watch the video above.

Why Carofin?2023-06-30T11:19:18-04:00

Understanding Investment Risks in Direct Private Investments

Understanding Risks in Private Placements Introduction On a recent episode of the Direct Private Investments Show, we dove into a discussion with industry experts, Bruce Smith and Josh Greene, examining some of the risks associated with private placements.  From  investment-related risks to industry risks, management risks, and offering related risks, we offer valuable insights to More >

Understanding Investment Risks in Direct Private Investments2023-06-28T14:16:04-04:00

Measuring Private Investment Returns

How should you measure investment returns?  This should help you decide.  The pricing of private securities is obscured by several factors: each is unique, analyses available for public securities don’t exist privately, and easy comparisons don’t exist. Let’s make sure that, when we’re talking about a Return on Investment (ROI, return or yield), we’re More >

Measuring Private Investment Returns2023-06-01T15:41:35-04:00

Considerations for Family Offices in Direct Private Investing

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 More >

Considerations for Family Offices in Direct Private Investing2022-01-12T13:01:22-05:00

Announcing Major Enhancements for Carofin Investors! 

Carofin is pleased to announce that you now have a complete view of your Carofin investments. Thanks to significant platform enhancements, you have secure access to comprehensive records across your portfolio of private Carofin investments. The Investor Dashboard presents your investment history (including cash flows) as well as issuer updates.     You can access the exclusive, password-protected Dashboard to dive More >

Announcing Major Enhancements for Carofin Investors! 2022-01-19T09:51:13-05:00

Reducing Expenses and Minimizing Taxes

Last week, my daughter asked for advice (obviously, she’s no longer a teenager): how can I balance my budget? I told her, among other tips, to control two things – reduce your expenses and minimize your taxes. What works for my family works for others.  That’s why Carofin encourages setting up a Self-Directed IRA custodian More >

Reducing Expenses and Minimizing Taxes2021-03-23T08:43:30-04:00

What do you mean by “Private Equity?”

Investors are increasingly drawn to alternative investments[i] to make them less vulnerable to market volatility and to achieve “absolute returns” (investment returns more directly tied to the underlying company’s financial performance). Within alternative investments, “Private Equity” investment opportunities abound, but what this really means can be confusing.  In this piece, we’ll try to demystify More >

What do you mean by “Private Equity?”2023-03-28T09:17:39-04:00

First Principles (#2): What Opportunity is being pursued?

Consistency is critical in our business. When it comes to investment analysis, this “First Principle” – “What primary business opportunity is the issuer pursuing?” – is the first question successful investors apply in their consistent approach to company analyses. Have you adopted this principle?    Identifying the fundamental rationale for an enterprise is central to More >

First Principles (#2): What Opportunity is being pursued?2020-12-17T14:17:01-05:00

Stock Markets and Safer Choices — There may be a better way

In a recent article in The Economist, the author bemoans the fact that today’s “low interest rates leave savers with few good options.” True, but a limited analysis.  Carofin suggests savvy investors, and particularly relative newcomers to private investments, look closely at private debt.  Let’s dig a little deeper. If they were planning for #retirement, More >

Stock Markets and Safer Choices — There may be a better way2022-07-01T11:15:28-04:00

Are You About to Become “Accredited?”

On August 26, 2020, the SEC adopted amendment to the “Accredited Investor” definition, which determines who can participate in most offerings in the private capital markets. While the definition historically limited access to individual investors who met a specific income or net worth test, the amended definition now allows investors with sufficient knowledge and expertise More >

Are You About to Become “Accredited?”2022-07-01T11:16:54-04:00

A Time for “Meaningful Investments”

The COVID years are proving to be a time for reflection – a relatively chaotic period that’s forcing us, both personally and professionally, to reconsider how and why we conduct our lives the way we do. Your investments are, obviously, an important reflection of your values and priorities. What Carofin offers, and why we hope More >

A Time for “Meaningful Investments”2022-03-25T15:43:54-04:00

The Case of the Slipping Shipping

Does it surprise you how inventive entrepreneurs are when problems arise? Here’s one that struck our fancy.  We call it “The Case of the Slipping Shipping.” Years ago, a business owner was mystified.  He would load a truck in one location for a customer delivery about 50 miles away.  Each time he did so, what More >

The Case of the Slipping Shipping2022-07-01T11:21:24-04:00

Measuring ROI in a private company is tough

The pricing of private securities is obscured by several factors: each is unique, analyses available for public securities don’t exist privately, and easy comparisons don’t exist.  Cash-on-cash, simple interest, and IRR are useful metrics, but only if you apply them correctly. Let’s make sure that, when we’re talking about a Return on Investment (ROI, return More >

Measuring ROI in a private company is tough2022-07-01T11:30:29-04:00

Investing in Private Companies vs. Publicly traded ones

The rules are very different in the private markets, and you should know the difference if you’re going to play the game. We all know that you can trade public securities.  The most well-known exchanges include the New York Stock Exchange and NASDAQ for U.S. public equities and the institutional “bond markets” for government and More >

Investing in Private Companies vs. Publicly traded ones2022-07-01T11:32:54-04:00

Venture Capital: Not the only way to invest privately

Just as with public securities, private securities are generally either equity or debt, but that’s the simple part.  The most commonly encountered forms of equity are called venture capital and “Private Equity” for private equity (yes…it’s used interchangeably), and senior vs. subordinated debt for private debt.  They attract investment because they command higher returns, based More >

Venture Capital: Not the only way to invest privately2022-07-01T11:34:59-04:00

When your investment has greater risk, you should expect greater rewards

Stock prices and bond yields are easy to find.  But it’s challenging to confirm whether the terms of a direct investment in private placements are fair. Given that the private securities markets (over $2.4 trillion/year raised in the U.S.Wall Street Journal, April 2018 ) are now larger than the public markets, we offer this framework More >

When your investment has greater risk, you should expect greater rewards2022-07-01T11:44:53-04:00

What to do after you loan money to a private business

We financed a scrap metal dealer once that needed additional working capital to purchase and process scrap because it had high cost overruns in building its large-scale shredding operation.  Let’s just say that experience is everything, and you can learn from ours.   Numerous lenders already were providing equipment financing with broad claims on the company’s assets – so we couldn’t use that collateral More >

What to do after you loan money to a private business2022-06-22T14:53:18-04:00

Red Flags in Due Diligence

We were approached by a small company in the consumer goods business looking to raise capital to build inventory.  It’s true, experience is everything, and we’re game to share.  In our normal course of conducting due diligence, we discovered that the owner of the company previously had exited and sold another business and, rather than pay federal taxes, he had More >

Red Flags in Due Diligence2022-07-01T11:54:26-04:00

What would you do for 20% more?

By Henry Yoshida | CEO of Rocket Dollar The Power Of Tax Deferral In A Self-Directed Account When we’re talking about your tip on a lunch out, 20% hardly seems worth discussing (especially if the service is good). When we’re talking about your retirement accounts, 20% could mean hundreds of thousands (even millions) of dollars More >

What would you do for 20% more?2022-07-01T11:56:48-04:00

Taking your retirement by the reins: What is a Self-Directed IRA?

By James Jones | CEO of IRAeXchange.net  I’ve spent a lot of time in and around IRAs and Self-Directed IRA or “SDIRA,” writing books, speeches, and, generally, educating folks on the topic.   Inevitably, when people get a chance to engage with me after a panel discussions or other presentation, they ask questions.  Shockingly, they are often CEOs, Fund Managers, and other financial professionals asking questions about a tax-deferred vehicle that, recently, is growing in More >

Taking your retirement by the reins: What is a Self-Directed IRA?2022-07-01T12:03:47-04:00

Wealthy in the Hamptons Set Their Sights on Private Investments

In an article in Bloomberg, Simone Foxman discusses the rising trend among the centimillionaires investing directly in private enterprises and away from managed products.  While I agree with the author, let me expand on a few points.  You Don’t Have to be a Centimillionaire to Play in This Market. First of all, it’s not just the centimillionaires who More >

Wealthy in the Hamptons Set Their Sights on Private Investments2022-07-01T11:06:28-04:00

So, I’m Eligible. What Should I Know Before Investing in Private Market Investments?

Your brother-in-law tells you this Company is going to revolutionize the (…pick an industry). And these people are incredibly experienced in this field.  “Let’s invest together,” he tells you. Well … let’s take a deep breath and think about private investing and what it might mean for you. More >

So, I’m Eligible. What Should I Know Before Investing in Private Market Investments?2024-01-17T14:49:29-05:00

What are “Alternative Investments?”

Everybody’s talking about alternative investments, but there seems to be a lot of confusion about what they are. Well, here’s our stab at defining alternative investments – what they are and what they’re not.  If you’re interested in learning about the alternative investments, this is a good place to start. More >

What are “Alternative Investments?”2024-01-24T13:25:13-05:00

Are Alternative Investments Right for You? Answer These Four Questions First.

We’ve made the point more than once in these articles: investing in an alternative investment, and particularly in a private Company, is a high-risk gambit.    Where there may be rewards, there are most certainly risks.  So, do your homework and think about the following four questions carefully.  It’s crucial that Investors in alternative investments carefully evaluate whether the opportunity is suitable. More >

Are Alternative Investments Right for You? Answer These Four Questions First.2021-02-03T17:30:22-05:00

Private Placement Investment Considerations

The following provides general background on, and underscores certain risks to Investors associated with, Private Placements. Private Offerings can be purchased directly from the Issuer of the Security during the Offering period or through an agented, “best efforts” process managed by a FINRA-registered Broker-Dealer acting as a Placement Agent.  Under U.S. law, other than the More >

Private Placement Investment Considerations2022-05-04T11:27:56-04:00

Perspectives on Private Investments & Crowdfunding

The following briefly reviews the history of securities exchanges, the establishment of the first U.S. federal securities law, touches on the regulatory burden that is currently imposed on Broker-Dealers, and references the exciting outgrowth of recent legislation authorizing Crowdfunding. While privately placed Securities represent, arguably, the oldest and least efficient form of investment banking, this More >

Perspectives on Private Investments & Crowdfunding2022-07-01T12:13:00-04:00

Crowdfunding Overview

Recognizing that access to capital is critical to the health of smaller companies which generate about 50% of U.S. job growth, the Congress passed the Jumpstart Our Business Startups (JOBS) Act in 2012, which set the stage for the development of equity Crowdfunding in the U.S. The JOBS Act The JOBS Act includes several More >

Crowdfunding Overview2022-10-04T11:03:36-04:00

Why Invest in Alternative Investments?

The following offers an explanation behind increasing investor allocations into Alternative Investments. The investment returns of many Alternative Investments result from the fundamental performance of the underlying business or project versus the more general swings of the equity and bond (Fixed Income) markets.  Alternative Investments tend to offer Total Returns as well as Non-Correlated Returns More >

Why Invest in Alternative Investments?2024-01-17T11:18:38-05:00

What is a Private Placement?

Below is a listing of the various categories of private Alternative Investments which comprise Carofin Offerings: For more detail regarding either debt or equity Offerings, please read “Private Placements: Debt Investment Overview,” or “Equity Investment Basics.”

What is a Private Placement?2022-10-28T14:17:13-04:00

Private Placements, Actors & Regulations

The following reviews the principal regulations which govern Private Placement offerings of securities and describes allowable investor participants. Private Placements are Offerings of Securities.  The transaction and the related securities do not follow the public registration requirements of the Securities Exchange Commission (“SEC”).  They are traditionally offered in a non-public manner (i.e., without public More >

Private Placements, Actors & Regulations2023-12-07T09:35:42-05:00

Risk vs. Return Considerations for Alternative Investments

This information summarizes important risk-related considerations for Investors making Alternative Investments. Evaluating a potential investment is, arguably, the most important aspect of any investing activity, whether as part of a private Securities Offering or for a publicly registered investment.  No investment is riskless, and losses will inevitably happen within a portfolio.  Limiting losses and More >

Risk vs. Return Considerations for Alternative Investments2024-01-17T11:17:06-05:00
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