Understanding Securities Structures in Direct Private Investments

Introduction 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 More >

Understanding Securities Structures in Direct Private Investments2023-06-28T15:32:14-04:00

Evaluating Venture-Stage Deals

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 More >

Evaluating Venture-Stage Deals2023-05-31T14:24:32-04:00

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

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

Be selective. It’s your money.

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 More >

Be selective. It’s your money.2022-02-09T09:01:34-05:00

Direct Private Investments: Why Invest in Them?

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 More >

Direct Private Investments: Why Invest in Them?2023-04-27T09:19:23-04:00

Debt Security Basics

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 More >

Debt Security Basics2024-01-04T08:48:28-05:00

Some Red Flags are Self-Evident

Look in any finance primer – you’ll see how highly structured and proscribed the public securities process is.  Not so for private company securities.  That’s why we spend so much time and effort up front on a deal doing our due diligence if for no other reason than to help our investors succeed. Some red More >

Some Red Flags are Self-Evident2022-07-01T08:46:32-04:00

Regulation Best Interest has been approved, now what?

In the evening of June 5, 2019, the Securities and Exchange Commission approved its final rule regarding Regulation Best Interest and Form CRS.  How will that impact you? The new rules are designed to enhance investor protections while preserving retail investor access and choice in: (1) the type of professional with whom they work, (2) More >

Regulation Best Interest has been approved, now what?2022-07-01T08:49:09-04:00

8,000+ locations and $6.1 Trillion Dollars in tax savings

If you’re an accredited investor, you’ve probably heard about Qualified Opportunity Zones (“QOZ”). Here’s a short guide to outline the what’s, why’s and who might consider this investment strategy. What opportunities and challenges do QOZs address? Opportunity zones were created to spur economic development in distressed communities across the nation by the Tax Cuts and More >

8,000+ locations and $6.1 Trillion Dollars in tax savings2022-07-01T09:05:45-04:00

Debt & Equity Investment Overview

When we talk about private securities, they can be split into two basic categories: Debt & Equity. While there are many many different flavors of each, every savvy investor needs to have a solid grasp on what makes one more appropriate than the other —especially before purchasing.  We put together a slightly exhaustive overview More >

Debt & Equity Investment Overview2023-04-05T10:58:28-04:00

Blue Sky Laws: History and Application to Private Investments

If you’re thinking of Willie Nelson crooning “Blue Skies,” you’d be in the right state of mind.  That’s because each state has its own state Securities laws, or “Blue Sky” laws, that further protect Investors from Securities fraud.   Here’s a brief overview of what those laws do for you.  More >

Blue Sky Laws: History and Application to Private Investments2020-12-08T17:09:03-05:00

Private Equity Term Sheet: Typical Terms and Conditions

You’re considering an equity investment in a private company with exciting prospects…  Great, but do you really know what your “equity” investment in the company will get you?  Investment characteristics of one type of private equity investment can be very, very different from another.  This guide can help you understand better what’s being offered to you. More >

Private Equity Term Sheet: Typical Terms and Conditions2024-01-17T14:51:12-05:00

Why Do Companies Use Debt Financing?

The following outlines the major reasons why businesses may choose to use debt financing over issuing equity when capital is needed. Businesses and other entities can finance their enterprises by issuing equity or using debt, such as borrowing funds through loans or by issuing notes.  Unlike equity, debt has a specified interest rate and a schedule of dates when interest is to be paid and all the principal fully repaid.    Many fast-growing companies would prefer to use More >

Why Do Companies Use Debt Financing?2022-04-11T10:53:59-04:00

Private Placement Memorandum and Other Private Investment Documents

You’ve decided to invest in a short-term private debt Security. Or, perhaps, a private equity investment. Great! Now what? Let’s review what you can expect in the way of Closing Documents, such as the Private Placement Memorandum. Closing Documents include agreements between the Issuer and the Investor in which the parties commit to participate in the offering and state the specific terms of the investment More >

Private Placement Memorandum and Other Private Investment Documents2024-01-24T13:27:31-05:00

Why Invest in Alternative Investments? Here are 3 Reasons.

Been watching the stock market recently?  Does it make you feel warm and fuzzy, or, like many investors, do you feel a bit uncertain and powerless? If so, join other Investors seeking higher returns, lower volatility, less correlation, and greater flexibility across their portfolios by investing some of their wealth in “Alternative Investments.” More >

Why Invest in Alternative Investments? Here are 3 Reasons.2020-12-18T14:18:21-05:00

What Securities Laws and Regulations Govern Private Placements?

The Federal government, and its regulatory agencies, are hard at work protecting investors.  Here’s a handy précis of the rules and regulations that Issuers follow when introducing Private Placements. There is a broad body of law and regulations governing public Securities.  What surprises many is the extent of the same More >

What Securities Laws and Regulations Govern Private Placements?2024-01-29T15:56:53-05:00

What is a Broker-Dealer?

If a Broker-Dealer offers you Private Placement investment opportunities, wouldn’t you like to know that there’s some regulatory oversight over it? More >

What is a Broker-Dealer?2022-11-11T14:15:33-05:00

Regulation D, Rule 506(b) Private Placements

The following provides a brief review of the SEC Rules defining the manner of offering private Securities to Accredited Investors Regulation D was established by the SEC in the 1980’s to define, more specifically, a manner of privately offering Securities.  Most companies issuing private Securities do so by following one of the Rules within Regulation More >

Regulation D, Rule 506(b) Private Placements2022-10-28T13:54:14-04:00

Regulation D, Rule 506(c) Private Placements

The information below provides a brief summary of SEC Rule 506(c) which allowed, for the first time, “general solicitations” of Private Placements to Accredited Investors. Regulation D was established by the SEC in the 1980’s to define more specifically a manner of privately offering Securities.  Most companies issuing private Securities do so by following one of More >

Regulation D, Rule 506(c) Private Placements2020-12-18T11:02:56-05:00

Closing Documentation for Private Placement Investment Opportunities

The following describes the Closing Documents one is likely to receive from the Issuer of a Private Placement. Closing documents include agreements between the Issuer and the Investor wherein the parties commit to participate in the Offering and the specific terms of the investment relationship.  These documents are executed by the Investor and/or by More >

Closing Documentation for Private Placement Investment Opportunities2023-12-13T11:23:13-05:00

Accredited Investor Questionnaire

The following form is one of the Private Placement Closing Documents to be executed by an Investor.  It certifies that the Investor is Accredited. With a Regulation D "Accredited Investor Investor Questionnaire," an investor represents to an issuer of securities that the undersigned qualifies as an “accredited investor” pursuant to Regulation D under More >

Accredited Investor Questionnaire2022-07-01T09:39:20-04:00

Debt Investment Overview

The information below provides an overview of debt-related investment, in particular Private Placement Offerings. Debt financing is raised by companies through the issuance of Securities called Promissory Notes, Senior Notes, Senior Secured Notes or Subordinated Notes.  These terms indicated the underlying credit structure of a given debt Security and are described below. The amount of More >

Debt Investment Overview2022-07-01T09:47:23-04:00

Equity Investment Basics

The information below provides a brief overview of Equity Securities. Companies raise capital in the form of either equity or debt. Equity represents an ownership interest in a for-profit company where the Net Equity Value of the company (i.e., total assets less indebtedness) and any ongoing profits are owned proportionately by the holders of More >

Equity Investment Basics2022-08-11T13:34:17-04:00

The SEC: Its Role with Private Equity and Private Finance

Enron. Bernie Madoff. WorldCom. Tyco International. Bre-X Minerals. Qwest Communications. Recognize these names? We’ve all heard the stories: rich schemers who deceive Investors, make false claims about their Companies, and pocket fraudulently generated profits while obliterating retirement savings from thousands of small (and large) Investors. Who protects us from cons More >

The SEC: Its Role with Private Equity and Private Finance2024-01-24T13:32:44-05:00
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