Pre IPO stocks investments in USA.

  • 15/05/2021 8:19 AM
  • India
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Opportunity to invest in a fund that specializes in pre IPO stocks investments in the USA.

How to go about the investments is detailed here under:

1) Connect client with Pre-IPO opportunities

2) Client completes New Member Request Form

3) Client undergoes OFAC check and Private Placement Memorandum (PPM) is generated by the fund.

4) Client signs PPM and Exhibits via DocuSign on Portal.

5) Client receives wiring instructions for the fund, and funds the account.

*Client can view their holdings, documents, statements at any time via their online portal with the fund.

The private shares they offer are purchased directly from the companies and have already passed the right of first refusal process (ROFR).

All members of the fund receive their private placement memorandum (PPM), outlining their specific interest in the fund, and shares held. The shares are held in the fund until the date-in-time the company goes public. Once the shares do become publicly traded, they are DTC transferred to a brokerage account of the client’s choosing. If a company lists directly, the fund bases its 20% carried interest on the first 5 trading days, or the last 5 trading days before the lockup is over in a traditional listing.

Their Pre-IPO’s are priced based on what they are offered the shares at by the company they are purchasing from. The price they are offering to their clients is the price they are getting the shares for.

There are no fees – no management fees, exit fees, holding fees, upfront fees, or transaction fees. Their only fee is the 20% carried interest on profits only. Meaning, if you invest in a company at $10 a share, and it goes up to $20 by the time it goes public, they take 20% of that $10 profit per share. They take their carried interest in shares to avoid tax liability. The 20% carried interest is where the fund makes money. They are aligned with their clients in the sense that they do not profit unless they do because they have no management or upfront fees.

All of their companies are late stage companies, which mitigates a lot of the speculative risk in the private equity space. That being said typically they are less likely to be delayed. In the event that the IPO date is delayed, the client has an option to refund their position, but they advise against this, as patience is a virtue especially when it comes to investing.

All of their shares have a carry, none with upfront fees. They charge no management fees, holding fees, exit fees, etc. Their only “fee” is the 20% carried interest on profits only.

They are not an investment bank; they are a private equity fund.

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