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. Risks of Private Investments Investors must be aware of the additional risks associated with...
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 alternative investments, this is a good place to start. What Alternative Investments Are Not Alternative investments are not equities (or stocks,...
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...
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 Issuer, only...
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...
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 provisions specifically designed to enhance Capital formation: Title II –...
The following offers an explanation behind the 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...
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.”
In the interest of accessibility, here are some terms that any investor should be familiary with.
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