Two fruits. Both are round, but each delivers an entirely different taste sensation and benefits to your palate. In a recent episode of the Direct Private Investments Show, proudly presented to you by Carofin, Matt Brown interviews Bruce Roberts and Garrick Ruiz about the two primary categories of private investments, debt and equity. This article draws upon the interview to help investors to...
Introduction Deciding whether to invest in a new venture is often challenging due to the many unknowns. In the following article, our CEO, Bruce Roberts, expands on the subject, drawing upon his decades of experience working with early stage enterprises. Defining Venture Stage Deals Venture-stage enterprises, according to Roberts, refer to operating businesses that are not consistently...
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: Debt vs. Equity. Before diving into the...
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 saying the same thing. It’s important to...
A young company approaches you. “Invest in us,” they say, “and your shares will be worth millions.” What are they offering, and does the structure make the most sense for you and the company? For the past quarter-century, we’ve been approached by companies – some little more than concepts – that showed promise. Many satisfied the first principles described in Carofin’s White Paper, Primary...
Investing directly in private companies can give you more control over your investments, help small businesses across the nation, and add balance to your traditional investment-heavy portfolio. And it might also provide tax benefits. Here are two things I hope you take away from this article: Develop a basic understanding for Direct Private Investments (DPI) and the two primary forms of...
by Bruce Smith When I first began thinking about investing, it was easy to get excited about start-ups (not that it isn’t any longer, but I’ve had my share of broken bones along the way). The chance to get in on a Google, an Apple or an Amazon stock while in its infancy is everyone’s catnip. But here’s a cautionary tale that explains what I’ve learned the hard way. I spent over a decade at a...
For those of us who remember “Lost in Space” (the 1965 TV series), these words are part of our lexicon. In the show, a robot would warn a young man living in space of impending danger. Well, some potential investors react the same way when a company pledges its assets as collateral. If the company can’t rely on its cash flow to get bank financing, they think the company must be in danger....
In the interest of accessibility, here are some terms that any investor should be familiary with.
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