What’s the Definition of “Private Placement”?
A Private Placement (aka: “PP”) is when stocks, bonds or securities are sold directly to a private investor instead of part of a public offering. A public offering is when stocks, bonds or securities are sold as part of a public stock exchange.
Private Placement Memorandums
Another way to describe the term “Private Placement” is as a method by which companies create large-scale investment opportunities that are only accessible to private investors who meet financial requirements established by the Securities and Exchange Commission. Companies develop an investment offering and then draft a Private Placement Memorandum (aka: “PPM”) detailing all of the pertinent information investors need know about the offering to make a decision. The Private Placement Memo is then sent out to accredited investors who would be willing to invest in the private offering.
How is an Investor Qualified as an “Accredited Investor”?
Only a very small percentage of the population qualifies as an accredited investor under the SEC’s Regulation D (meaning an elite group of investors who have their pick of the largest and most profitable investments in the country). A company’s Private Placement Memorandum must be pristine in order to stand a chance against all of the other private placement opportunities available to accredited investors.
Still, even the best-crafted Private Placement Memorandum is useless if you don’t have a list of accredited investors to send it to. If your Private Placement Offering doesn’t fall under one of our specific lead categories, our Private Placement Leads are the next best option. Every accredited investor lead on this list has not only received and invested in Private Placement Investment Offerings in the past, but have also expressed interest in receiving solicitations for similar offerings in the future. These investors are less interested in specific investment markets and industries and more interested in quality investment opportunities that will provide strong returns on investment regardless of the industry.
Diversity is important to our Private Placement Investors. While there are certainly crossovers between our specific-investment leads and our private placement leads, a spot in one list does not guarantee our investors a place in the other. Certain industry-specific investors are too set in their ways to appreciate a strong private investment offering in an industry they are unfamiliar with. Our Private Placement Investor Leads have a wide range of investing experience; they are more willing to research and test new investment markets than our other leads. Return on investment is the bottom line with these accredited investors; if the offer will make money, these leads are more than happy to invest.
What’s a Private Placement Lead?
A Private Placement Lead (or Private Placement List) is someone who has requested information about Private Placements. This person was read the definition of an “accredited investor” and has made $200,000 a year for the last three (3) years or$300,000 combined. He also has experience managing his own personal financial portfolio and has been asked the specific question, “Is $25,000 to $50,000 a comfortable entry level for a first-time investment?”
PP Investors (AKA – Accredited Investors)
Investors for private placements are also often categorized as “accredited investors”. And the actual definition of an Accredited Investor is an individual or entity who is allowed to deal with securities, which are not registered with financial authorities by fulfilling at least one of the requirements on income, net worth, asset size, governance status or professional experience. So, it’s important to understand, when you’re looking for a private placement lead, you’re looking for investors that have either participated in a private placement or are looking to participate in a private placement.
Other similar terms you may have heard, such as:
- Accredited Investor Lists
- Accredited Investor Participants
- Private Placement Memos (aka: “PPMs”)
- Private Placement Memorandum Recipients
Regardless of the PPM or Accredited Investor term used, they all belong together. We hope this clears up any previous confusion for you.
If you’re looking for Private Placement Investors, we have the most qualified investor leads and lists available. We’re the best private placement leads broker agency in the country with more than 26 consecutive years of an A+ rating with the BBB. We’ve had absolutely NO COMPLAINTS.
If you have any other questions about Private Placement or Accredited Investors, leads or lists, call me, John Fischer directly at 561-981-8777. Have a beautiful day and God bless..