With public markets offering fewer listed companies and private strategies often delivering stronger net returns than their public counterparts, many advisors are adopting a 50/30/20 model in clients’ portfolios, with 20 percent allocated to alternatives. ¹² As this category becomes a core building block, it is important to understand how private equity, private credit, and real assets each...
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....
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...
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 following article,...
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...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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