Thorough investment analysis should be preceded by an abbreviated process described in the “Five Elements.” Once this framework is understood, a private investor can determine whether a more in-depth and time-consuming investigation is warranted. The five elements that influence an investment’s structure include: 1. Purpose – Why is this capital being raised? 2. Issuer – Who is issuing the...
With over $3 trillion in the private investment market, accredited investors have a wide variety of alternative investments from which to choose. When selected properly, these securities can provide an attractive complement to more traditional investment portfolios. However, to consistently achieve the best investment performance, it is important that three things are in alignment: Right...
It is difficult for Angel and other individual investors to determine whether the investment returns offered through a given private placement are fair. This White Paper reviews ranges of investment yields (Return on investment or “ROI”) appropriate for various types of direct private investment in operating companies, including private debt, venture capital and private equity. The most common...
Alternative investments are now easier to find for individual investors, but crowdfunding websites often fail to incorporate two cornerstones of private investing: Accreditation and Suitability. Crowdfunding portals typically rely on the investors' ability to self-select deals that may or may not be appropriate for them. Carofin strives to ensure in its private placement offerings that each...
Nine “Leaps of Faith” are identified to quickly evaluate and contrast venture-stage equity investments (“venture capital” investments). They include: Has the entrepreneur launched a start-up before? Is the company’s product or service simply an improvement to existing practices or a disruptive technology? Do they have a product? What are the customers’ motivations for buying...
Where do investors start in their private investment analysis ... even before conducting due diligence? At the most basic level -- First Principles, "the first basis from which a thing is known." First credited to Aristotle and commonly applied in scientific analysis, First Principles is an approach for identifying the most fundamental considerations when evaluating a problem (or opportunity)...
Fast-growing private companies in need of capital have an alternative to traditional debt or equity financing -- revenue royalty-based financing. Revenue royalty notes afford the private investor the opportunity to collect current income with a return on investment (ROI) that can be comparable to private equity. Unlike distributions from private equity investments, payments received from Royalty...
Attractive investment returns are possible through private lending, but preparation, proper loan structuring and ongoing monitoring are essential to protecting your invested capital. This White Paper offers a three-step process: 1) Get to know the Issuer’s management well and conduct a thorough credit analysis and due diligence review of the Issuer; 2) Structure the investment, as defined in...
In the interest of accessibility, here are some terms that any investor should be familiary with.
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The information contained herein is for informational purposes only and is not intended for further distribution. The information does not constitute a complete description of any investment or investment performance. This webpage is in no way a solicitation nor is it an offer to sell securities nor is it advice or recommendation regarding any investment. The information is not directed to any person who is not believed to qualify under the definition of an Accredited Investor under the rules of Regulation D of the 1933 Securities and Exchange Act. No security listed on this webpage or otherwise offered through Carofin, LLC may be purchased without prior receipt of a complete Private Placement Memorandum or other official offers of sale.
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