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

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

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 of More >

Debt & Equity Investment Overview2022-07-01T09:24:50-04:00

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 Lending to Operating Companies

You don’t need to be a genius to understand what happens when you lend money to a private company, but there are important things you need to know. Let’s take the mystique out of private loans! More >

Private Lending to Operating Companies2022-07-01T08:44:07-04:00

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

Alternative Investment Categories

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.”  

Alternative Investment Categories2022-01-19T08:21:11-05:00
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