Who are Private Placement Investors?
The money to fund private placements comes from an investor who is one of the following:
- A high net worth individual with a net income in excess of US$200K
- A household with a net income in excess of US$300K or with a net worth over US$1 million
The private investment market allows investors to get involved in a company. A Private Placement Investor has the opportunity to keep a closer eye on their investment, than a public market investor, and has the opportunity to reap large financial benefits by getting in on the ground floor of what could be a hugely successful company.
How much money do I need to be a Private Placement Investor?
Most investors invest between 5-20% of their personal disposable wealth (excluding their principal private residence, pensions, and life insurance). Potential investors should take account of their own financial commitments. However, they should take advice from their personal financial advisor about planning their investments to identify what level of private placement investment is right for them.
How much available time do I need?
Many investors fit their investments around a range of other activities. They can adapt it to their availability, taking account of their work and other time commitments, or they may be retired and have more time at their disposal. Azione helps to identify and select investment opportunities and where they can invest in syndication alongside more experienced investors.
How much do investors invest in a business?
In general, investors will invest anywhere from less than US$50K to upwards of US$10 million in a single venture, depending on the business and the growth needs. Also with an increasing trend towards investors investing in groups and syndicates, larger amounts of finance above US$50 million can be raised by pooling their finance. It is also advisable to take a portfolio approach to spread their investments and thereby spread their risks and increase their opportunities for returns.