Here are some common questions (and answers) about my private equity offerings in Nanaimo and the surrounding areas.
What is Private Equity?
Simply put, private equity is capital or shares of ownership that are not publicly traded or listed (unlike stocks, for example). For this reason, private equity opportunities are offered through private equity firms ( ).
Who is ( ) Capital?
In Canada, whoever offers( ) is an Exempt Market Dealer. Before any investment can be offered to any client, a thorough due diligence process is completed by ( )
What should I look for when a private company is offering an investment opportunity?
Private companies often structure their investment opportunities with terms of 5 years or greater in length which gives them a comfortable amount of time to use the funds and execute their plans in an effort to maximize returns. During this time, the management of the company focuses on accomplishing their business plans to achieve success. To compensate investors, private companies typically provide income and/or profit sharing.
What is the Exempt Market in Canada?
In the exempt market, there are 4 primary groups which are active throughout the entire process of every investment transaction:
Additional participant groups:
What is Private Equity?
Simply put, private equity is capital or shares of ownership that are not publicly traded or listed (unlike stocks, for example). For this reason, private equity opportunities are offered through private equity firms ( ).
Who is ( ) Capital?
In Canada, whoever offers( ) is an Exempt Market Dealer. Before any investment can be offered to any client, a thorough due diligence process is completed by ( )
What should I look for when a private company is offering an investment opportunity?
Private companies often structure their investment opportunities with terms of 5 years or greater in length which gives them a comfortable amount of time to use the funds and execute their plans in an effort to maximize returns. During this time, the management of the company focuses on accomplishing their business plans to achieve success. To compensate investors, private companies typically provide income and/or profit sharing.
What is the Exempt Market in Canada?
In the exempt market, there are 4 primary groups which are active throughout the entire process of every investment transaction:
- The Issuer: The company seeking funds so that it can execute a business plan. The company is authorized to use the investment funds as disclosed in their Offering Memorandum or other offering documents.
- Exempt Market Dealers (EMD): The EMD is responsible for complying with certain know your client, know your product and suitability obligations, along with ohter regulatory responsibilities. These obligations are extentions of the EMD's general duty to deal fairly, honestly and in good faith with its clients.
- Dealing Representative (DR): The DR is responsible for engaging in a meaningful dialogue with clients in order to obtain a solid understanding of their investment needs and objectives, and to explain how a proposed investment strategy is suitable for the client in light of their investment needs and objectives. The DR can only offer investments that have been approved by their respective EMD.
- Investors: A person or entity purchasing securities.
Additional participant groups:
- Provincial securities regulators
- Trust companies: For investors who make their investments through registered funds such as RRSP's, RRIF's. TFSA, et cetera. The trust companies hold the investments "In Trust For" the investors.