Looking for Private Investment Funding via Debt or Equity?
What Private Investment Funding Is
Let’s start off with helping to define what Private Investment Funding is via a Private Investment Fund. A private investment fund is an investment company or a group of investors that does not solicit capital from retail investors or the general public. To be classified as a private fund, a fund must meet one of the exemptions outlined in the US Investment Company Act of 1940. The 3C1 or 3C7 exemptions within the Act are frequently used to establish a fund as a private investment fund. There is an advantage to maintaining private investment fund status, as the regulatory and legal requirements are much lower than what is required for funds that are traded publicly.
Asset Based Loan Program
Some private investment companies are able to loan on virtually any type of asset – raw land, mines, air rights, gold, silver, diamonds, art, oils wells, precious metals – minimum $100 Million and up! They can offer the use of this money for project funding or cash out and get up to 300% LTV!
One of the private investment companies we work with are direct lenders with over $200 Billion in available capital. They can creatively customize a loan to fit your situation and your borrowing needs. They specialize in large construction loans.
Equity or Debt
A number of private investment companies offer options to provide the equity required for your project and can be a complete equity and debt solution. They have share with us that they are very comfortable lending debt or providing equity participation in the $300 Million to $20 Billion range.
Mega Commercial & Construction Loans
One of the Private Investment and Funding Companies have any type of large commercial construction project – domestic or international. Their expertise is in construction projects ranging from $300 Million to $20 Billion. These projects can include refineries, solar farms, wind farms, power plants, green energy projects, data centers, condo projects, hospitality, stadiums, arenas, concert halls, and office towers.
Many hedge funds are private investment funds so they can continue to use aggressive trading strategies that the manager of a public fund would avoid due to the potential for investor lawsuits resulting from unreasonable risk-taking. Most importantly, there is no public reporting of positions for private investment funds, which allows them to avoid tipping their hand to the market and eroding the profitability of a stealthily built position.
Why Investment Funds Stay Private
Private investment funds may decide to remain private for various reasons. As referenced, the guidelines around private venture investments are a lot looser than for public assets. Private venture funds appreciate more opportunity by they way they handle everything from reporting to fund redemptions. This permits private speculation assets to take a gander at illiquid ventures that a public fund would avoid because of issues with standard valuation and liquidation on account of rising reclamations. Many hedge funds are private investment companies. In particular, there is no no public reporting of positions for private investment funds, which permits them from showing their cards to the market and compromising the profitability of their position.
Extremely Wealthy Families are known to create private investment funds with the family members as shareholders. They use these vehicles to manage, leverage and invest their family wealth.
