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    • Venture Capital is an important form of private equity that allows investors to gain access to small, early-stage, and emerging firms in order to fund their growth. The ability for capital to flow to these companies helps create a vibrant economy since it allows funding to flow to small growing companies that may be developing new ideas and technologies for tomorrow’s growth sectors. Given the risk associated with investing in these companies, investors require a commensurate amount of return.
    • Consultants are companies which are engaged in order to help institutions such as pension funds, endowments, foundations as well as family offices make investment decisions. The main difference between a consultant and an advisor is that the consultant does not have discretion over any investment decisions. Usually a consultant has a process for defining investment allocations and will make recommendations based upon their process. The consultant’s client has final decision making authority.
    • Equity represents the value of a company minus its liabilities. Investing in privately negotiated equity usually means negotiating valuation and other terms such that both the company and the investor feels that there is a fair division of risk and return.
    • Corporates are the treasury area within a corporation. Usually the treasury is concerned about the company’s cash flow position and is interested in investing into low risk, liquid assets so that cash can be used for M&A as well as operations. In addition, more and more corporates are creating strategic investment areas. These areas will invest into investments that provide strategic boost either by increasing growth, technology or other strategic potential.
    • Growth and Acceleration Capital is capital that is being used by a company to accelerate their growth. Often this capital relates to early stage venture companies which are investing in technology, healthcare, media or other development and require capital to further their corporate development.
    • DFI’s are specialized government institutions which invest into countries and projects which fit the country’s strategic initiatives. DFI’s often invest into frontier markets where they are concerned about impact and ESG investing.
    • Loans are debt instruments issued by banks and other non-bank lenders. They tend to have a lower risk profile than other debt investment opportunities and can be used as collateral for highly structured transactions which can increase the return profile of some of the portions of the structure while reducing risk for others (ie: Collateralized Loan Obligations).
    • Endowments, Foundations and Outsourced CIO are usually flexible institutional investors. They have relatively few legal and regulatory requirements for their investment allocations other than to make 5% annual payouts and to exercise appropriate fiduciary responsibilities. They tend to be large allocators to alternative investments and will sometimes be willing to take risks on relatively new investment ideas.
    • Mergers and acquisitions is the consolidation of companies or assets through purchase or other financial transactions. It can include mergers, acquisitions, management buyouts, asset purchases, tender offers, consolidations and any other consolidation of entities. This is a specialized transaction and requires knowledgeable advise in order to maximize likelihood of success.
    • Family office investors can be the most flexible of all investors.   Since the capital is invested at the discretion of the capitals’ owner, the capital can be invested in any investment that matches the owner’s risk adjusted return profile.   Depending upon the size of the family office, there may or may not be professional staff.
    • Middle market companies are typically those with an existing business whose revenues are between $10 million and $1 billion in range. These companies are the core of American industry and offer valuable investment opportunities in both debt/credit and equity. Management of these companies are usually key to their success and enable them to prosper under various market conditions.
    • Multi-family offices generally consist of a few larger families which have pooled resources in order to make investments and to achieve economies of scale as well as share investment ideas. Multi-family offices have many of the same characteristics as single family offices in terms of their investment flexibility, although, they almost always have a more formal investment decision making process.
    • Opportunistic Capital and Innovative Financial Products investors tend to represent capital that can move quickly in order to respond to specialized situations. The investors in this category can invest into opportunities where the majority of investors do not invest so they expect to receive returns that are commensurate with their unique ability to be flexible. These investment opportunities require skill to negotiate and close in order to ensure that both investor and issuer create a mutually beneficial transaction.
    • Funds are commingled investment vehicles which usually have relatively specific investment criterion. Since Funds consist of investment professionals who are actively looking for investments that match their investment criterion, they usually make reasonably quick investment decisions when they find an investment that fits their profile.
    • PIPES (Private Investments in Public Companies) usually become available when a company wants to raise money quickly. These investments often take the form of preferred stock or a convertible security where the equity is offered at a discount to market value. Usually the issuer is a smaller public company whose shares are not very liquid so, done properly, they give smaller public companies access to capital at a lower cost than typical underwritings.
    • Fund of Funds are funds which invest into other funds. They provide investors with access to specific discretionary investment decision making as well as they provide smaller investors the ability to access and gain diversification in funds which they might not be able to access on their own. Investors are generally sensitive to a double layer of fees unless the Fund of Fund can demonstrate its value add.
    • Private capital is another term for private placements of debt or equity. It generally means an offering which offers higher risk adjusted returns since it often refers to offerings which are complicated or structured.
    • Government/Sovereign Wealth Funds are generally large investment pools tied to the sale of government assets (ie: oil) where the proceeds are invested rather than spent. These investment pools tend to be very large and tend to make very large investments. A growing trend is for these entities to make direct rather than fund investments to avoid paying fund management fees.
    • Private credit opportunities tend to offer attractive returns based upon leveraging unusual assets and/or being highly structured. Private credit usually involves debt opportunities into which banks are not lending which drives up potential returns.
    • Health Organizations are hospital and other healthcare systems. The large organizations have large balance sheets/investment portfolios and have a constant need for investment opportunities. They can be relatively flexible with their investment mandates since the capital usually comes from their balance sheet. However, they do need to be concerned about having enough liquidity to sustain any healthcare legal changes as well as be nimble enough to undertake acquisitions if opportunities arise.
    • Private Equity is a broad term that applies to private companies as well as funds that invest into private companies. Given private markets are not required to disclose financial information, these companies and funds typically require specific skillsets in order to ensure best outcomes.
    • Investment advisors who are wealth advisors are one of the largest and most diverse investment types. Depending upon the type and size of the organization, they can range from being extremely professional with large centralized research teams to being entrepreneurial with each advisor left to make their own investment decisions. They can also represent a diversified client base from ultra high net-worth to small institutions, to wealthy individuals. Given their diversity, they are usually a reasonable investor in many different investment opportunities.
    • Private Placements are investment opportunities that are exempt from SEC registration requirements. These investment opportunities usually present higher returns for similar risk since they are often more illiquid than public security offerings. Issuers must meet certain regulatory public market registration exemptions prior to making a private placement offering.
    • Insurance companies represent very large pools of aggregated capital however, they are tightly regulated and must abide by their regulatory capital guidelines. Given the regulatory framework is based upon traditional investment metrics, they tend to be reasonably conservative. They also need to be concerned about meeting long term obligations (especially life insurance companies) so often invest with a longer term investment horizon.
    • As part of a corporate restructuring, additional capital is usually required to ensure that a company will prosper after the restructuring. Depending upon the restructuring stage, additional capital will negotiate protections from bankruptcy harm as well as try to achieve high returns for investing in a risky situation. Restructuring usually requires a high degree of structuring expertise from both the company and investor.
    • Pensions represent one of the largest global investment capital pools however, they are tightly regulated. Given their regulatory and fiduciary responsibilities, they are usually quite conservative in their investments and invest in traditional asset classes with well-regarded investment professionals. Recently, they have started to invest more of their capital in alternatives as well as in direct investments as they try to reach relatively high internal investment annuity based benchmarks.
    • Structured Finance is a specialized investment that enables issuers to fund alternative activities by moving assets off balance sheet or otherwise segregating assets and enables investors to find attractive alternative investment opportunities.   Common structured finance asset types include residential mortgages (MBS), commercial mortgages (CMBS), corporate loans (CLOs), debt instruments (CDOs), leases and receivables.   These structured transactions require specialized knowledge from both the issuer and the investor.
    • Credit is a flexible debt financing alternative which should be less expensive than equity and provide an attractive risk adjusted profile for an investor.   Credit opportunities usually include covenants and other structuring tools to create a risk profile that matches the investor expected return.
    • Global institutions are important to the capital markets since they often have diversifying requirements and expectations.
    • Banks are institutions that provide senior credit and often have multiple other investment arms including asset management, wealth management and pensions.  These can be complex institutions that require industry knowledge to understand.
    • Business Development Companies (“BDC”) are specialized closed end investment companies that usually invest in high yielding assets such as loans or other current pay investments since they must distribute 90% of their income to avoid Federal taxes at the BDC (much like REITS).
    • Venture Capital is an important form of private equity that allows investors to gain access to small, early-stage, and emerging firms in order to fund their growth. The ability for capital to flow to these companies helps create a vibrant economy since it allows funding to flow to small growing companies that may be developing new ideas and technologies for tomorrow’s growth sectors. Given the risk associated with investing in these companies, investors require a commensurate amount of return.
    • Consultants are companies which are engaged in order to help institutions such as pension funds, endowments, foundations as well as family offices make investment decisions. The main difference between a consultant and an advisor is that the consultant does not have discretion over any investment decisions. Usually a consultant has a process for defining investment allocations and will make recommendations based upon their process. The consultant’s client has final decision making authority.
    • Equity represents the value of a company minus its liabilities. Investing in privately negotiated equity usually means negotiating valuation and other terms such that both the company and the investor feels that there is a fair division of risk and return.
    • Corporates are the treasury area within a corporation. Usually the treasury is concerned about the company’s cash flow position and is interested in investing into low risk, liquid assets so that cash can be used for M&A as well as operations. In addition, more and more corporates are creating strategic investment areas. These areas will invest into investments that provide strategic boost either by increasing growth, technology or other strategic potential.
    • Growth and Acceleration Capital is capital that is being used by a company to accelerate their growth. Often this capital relates to early stage venture companies which are investing in technology, healthcare, media or other development and require capital to further their corporate development.
    • DFI’s are specialized government institutions which invest into countries and projects which fit the country’s strategic initiatives. DFI’s often invest into frontier markets where they are concerned about impact and ESG investing.
    • Loans are debt instruments issued by banks and other non-bank lenders. They tend to have a lower risk profile than other debt investment opportunities and can be used as collateral for highly structured transactions which can increase the return profile of some of the portions of the structure while reducing risk for others (ie: Collateralized Loan Obligations).
    • Endowments, Foundations and Outsourced CIO are usually flexible institutional investors. They have relatively few legal and regulatory requirements for their investment allocations other than to make 5% annual payouts and to exercise appropriate fiduciary responsibilities. They tend to be large allocators to alternative investments and will sometimes be willing to take risks on relatively new investment ideas.
    • Mergers and acquisitions is the consolidation of companies or assets through purchase or other financial transactions. It can include mergers, acquisitions, management buyouts, asset purchases, tender offers, consolidations and any other consolidation of entities. This is a specialized transaction and requires knowledgeable advise in order to maximize likelihood of success.
    • Family office investors can be the most flexible of all investors.   Since the capital is invested at the discretion of the capitals’ owner, the capital can be invested in any investment that matches the owner’s risk adjusted return profile.   Depending upon the size of the family office, there may or may not be professional staff.
    • Middle market companies are typically those with an existing business whose revenues are between $10 million and $1 billion in range. These companies are the core of American industry and offer valuable investment opportunities in both debt/credit and equity. Management of these companies are usually key to their success and enable them to prosper under various market conditions.
    • Multi-family offices generally consist of a few larger families which have pooled resources in order to make investments and to achieve economies of scale as well as share investment ideas. Multi-family offices have many of the same characteristics as single family offices in terms of their investment flexibility, although, they almost always have a more formal investment decision making process.
    • Opportunistic Capital and Innovative Financial Products investors tend to represent capital that can move quickly in order to respond to specialized situations. The investors in this category can invest into opportunities where the majority of investors do not invest so they expect to receive returns that are commensurate with their unique ability to be flexible. These investment opportunities require skill to negotiate and close in order to ensure that both investor and issuer create a mutually beneficial transaction.
    • Funds are commingled investment vehicles which usually have relatively specific investment criterion. Since Funds consist of investment professionals who are actively looking for investments that match their investment criterion, they usually make reasonably quick investment decisions when they find an investment that fits their profile.
    • PIPES (Private Investments in Public Companies) usually become available when a company wants to raise money quickly. These investments often take the form of preferred stock or a convertible security where the equity is offered at a discount to market value. Usually the issuer is a smaller public company whose shares are not very liquid so, done properly, they give smaller public companies access to capital at a lower cost than typical underwritings.
    • Fund of Funds are funds which invest into other funds. They provide investors with access to specific discretionary investment decision making as well as they provide smaller investors the ability to access and gain diversification in funds which they might not be able to access on their own. Investors are generally sensitive to a double layer of fees unless the Fund of Fund can demonstrate its value add.
    • Private capital is another term for private placements of debt or equity. It generally means an offering which offers higher risk adjusted returns since it often refers to offerings which are complicated or structured.
    • Government/Sovereign Wealth Funds are generally large investment pools tied to the sale of government assets (ie: oil) where the proceeds are invested rather than spent. These investment pools tend to be very large and tend to make very large investments. A growing trend is for these entities to make direct rather than fund investments to avoid paying fund management fees.
    • Private credit opportunities tend to offer attractive returns based upon leveraging unusual assets and/or being highly structured. Private credit usually involves debt opportunities into which banks are not lending which drives up potential returns.
    • Health Organizations are hospital and other healthcare systems. The large organizations have large balance sheets/investment portfolios and have a constant need for investment opportunities. They can be relatively flexible with their investment mandates since the capital usually comes from their balance sheet. However, they do need to be concerned about having enough liquidity to sustain any healthcare legal changes as well as be nimble enough to undertake acquisitions if opportunities arise.
    • Private Equity is a broad term that applies to private companies as well as funds that invest into private companies. Given private markets are not required to disclose financial information, these companies and funds typically require specific skillsets in order to ensure best outcomes.
    • Investment advisors who are wealth advisors are one of the largest and most diverse investment types. Depending upon the type and size of the organization, they can range from being extremely professional with large centralized research teams to being entrepreneurial with each advisor left to make their own investment decisions. They can also represent a diversified client base from ultra high net-worth to small institutions, to wealthy individuals. Given their diversity, they are usually a reasonable investor in many different investment opportunities.
    • Private Placements are investment opportunities that are exempt from SEC registration requirements. These investment opportunities usually present higher returns for similar risk since they are often more illiquid than public security offerings. Issuers must meet certain regulatory public market registration exemptions prior to making a private placement offering.
    • Insurance companies represent very large pools of aggregated capital however, they are tightly regulated and must abide by their regulatory capital guidelines. Given the regulatory framework is based upon traditional investment metrics, they tend to be reasonably conservative. They also need to be concerned about meeting long term obligations (especially life insurance companies) so often invest with a longer term investment horizon.
    • As part of a corporate restructuring, additional capital is usually required to ensure that a company will prosper after the restructuring. Depending upon the restructuring stage, additional capital will negotiate protections from bankruptcy harm as well as try to achieve high returns for investing in a risky situation. Restructuring usually requires a high degree of structuring expertise from both the company and investor.
    • Pensions represent one of the largest global investment capital pools however, they are tightly regulated. Given their regulatory and fiduciary responsibilities, they are usually quite conservative in their investments and invest in traditional asset classes with well-regarded investment professionals. Recently, they have started to invest more of their capital in alternatives as well as in direct investments as they try to reach relatively high internal investment annuity based benchmarks.
    • Structured Finance is a specialized investment that enables issuers to fund alternative activities by moving assets off balance sheet or otherwise segregating assets and enables investors to find attractive alternative investment opportunities.   Common structured finance asset types include residential mortgages (MBS), commercial mortgages (CMBS), corporate loans (CLOs), debt instruments (CDOs), leases and receivables.   These structured transactions require specialized knowledge from both the issuer and the investor.
    • Credit is a flexible debt financing alternative which should be less expensive than equity and provide an attractive risk adjusted profile for an investor.   Credit opportunities usually include covenants and other structuring tools to create a risk profile that matches the investor expected return.
    • Global institutions are important to the capital markets since they often have diversifying requirements and expectations.
    • Banks are institutions that provide senior credit and often have multiple other investment arms including asset management, wealth management and pensions.  These can be complex institutions that require industry knowledge to understand.
    • Business Development Companies (“BDC”) are specialized closed end investment companies that usually invest in high yielding assets such as loans or other current pay investments since they must distribute 90% of their income to avoid Federal taxes at the BDC (much like REITS).
    • Venture Capital is an important form of private equity that allows investors to gain access to small, early-stage, and emerging firms in order to fund their growth. The ability for capital to flow to these companies helps create a vibrant economy since it allows funding to flow to small growing companies that may be developing new ideas and technologies for tomorrow’s growth sectors. Given the risk associated with investing in these companies, investors require a commensurate amount of return.
    • Consultants are companies which are engaged in order to help institutions such as pension funds, endowments, foundations as well as family offices make investment decisions. The main difference between a consultant and an advisor is that the consultant does not have discretion over any investment decisions. Usually a consultant has a process for defining investment allocations and will make recommendations based upon their process. The consultant’s client has final decision making authority.
    • Equity represents the value of a company minus its liabilities. Investing in privately negotiated equity usually means negotiating valuation and other terms such that both the company and the investor feels that there is a fair division of risk and return.
    • Corporates are the treasury area within a corporation. Usually the treasury is concerned about the company’s cash flow position and is interested in investing into low risk, liquid assets so that cash can be used for M&A as well as operations. In addition, more and more corporates are creating strategic investment areas. These areas will invest into investments that provide strategic boost either by increasing growth, technology or other strategic potential.
    • Growth and Acceleration Capital is capital that is being used by a company to accelerate their growth. Often this capital relates to early stage venture companies which are investing in technology, healthcare, media or other development and require capital to further their corporate development.
    • DFI’s are specialized government institutions which invest into countries and projects which fit the country’s strategic initiatives. DFI’s often invest into frontier markets where they are concerned about impact and ESG investing.
    • Loans are debt instruments issued by banks and other non-bank lenders. They tend to have a lower risk profile than other debt investment opportunities and can be used as collateral for highly structured transactions which can increase the return profile of some of the portions of the structure while reducing risk for others (ie: Collateralized Loan Obligations).
    • Endowments, Foundations and Outsourced CIO are usually flexible institutional investors. They have relatively few legal and regulatory requirements for their investment allocations other than to make 5% annual payouts and to exercise appropriate fiduciary responsibilities. They tend to be large allocators to alternative investments and will sometimes be willing to take risks on relatively new investment ideas.
    • Mergers and acquisitions is the consolidation of companies or assets through purchase or other financial transactions. It can include mergers, acquisitions, management buyouts, asset purchases, tender offers, consolidations and any other consolidation of entities. This is a specialized transaction and requires knowledgeable advise in order to maximize likelihood of success.
    • Family office investors can be the most flexible of all investors.   Since the capital is invested at the discretion of the capitals’ owner, the capital can be invested in any investment that matches the owner’s risk adjusted return profile.   Depending upon the size of the family office, there may or may not be professional staff.
    • Middle market companies are typically those with an existing business whose revenues are between $10 million and $1 billion in range. These companies are the core of American industry and offer valuable investment opportunities in both debt/credit and equity. Management of these companies are usually key to their success and enable them to prosper under various market conditions.
    • Multi-family offices generally consist of a few larger families which have pooled resources in order to make investments and to achieve economies of scale as well as share investment ideas. Multi-family offices have many of the same characteristics as single family offices in terms of their investment flexibility, although, they almost always have a more formal investment decision making process.
    • Opportunistic Capital and Innovative Financial Products investors tend to represent capital that can move quickly in order to respond to specialized situations. The investors in this category can invest into opportunities where the majority of investors do not invest so they expect to receive returns that are commensurate with their unique ability to be flexible. These investment opportunities require skill to negotiate and close in order to ensure that both investor and issuer create a mutually beneficial transaction.
    • Funds are commingled investment vehicles which usually have relatively specific investment criterion. Since Funds consist of investment professionals who are actively looking for investments that match their investment criterion, they usually make reasonably quick investment decisions when they find an investment that fits their profile.
    • PIPES (Private Investments in Public Companies) usually become available when a company wants to raise money quickly. These investments often take the form of preferred stock or a convertible security where the equity is offered at a discount to market value. Usually the issuer is a smaller public company whose shares are not very liquid so, done properly, they give smaller public companies access to capital at a lower cost than typical underwritings.
    • Fund of Funds are funds which invest into other funds. They provide investors with access to specific discretionary investment decision making as well as they provide smaller investors the ability to access and gain diversification in funds which they might not be able to access on their own. Investors are generally sensitive to a double layer of fees unless the Fund of Fund can demonstrate its value add.
    • Private capital is another term for private placements of debt or equity. It generally means an offering which offers higher risk adjusted returns since it often refers to offerings which are complicated or structured.
    • Government/Sovereign Wealth Funds are generally large investment pools tied to the sale of government assets (ie: oil) where the proceeds are invested rather than spent. These investment pools tend to be very large and tend to make very large investments. A growing trend is for these entities to make direct rather than fund investments to avoid paying fund management fees.
    • Private credit opportunities tend to offer attractive returns based upon leveraging unusual assets and/or being highly structured. Private credit usually involves debt opportunities into which banks are not lending which drives up potential returns.
    • Health Organizations are hospital and other healthcare systems. The large organizations have large balance sheets/investment portfolios and have a constant need for investment opportunities. They can be relatively flexible with their investment mandates since the capital usually comes from their balance sheet. However, they do need to be concerned about having enough liquidity to sustain any healthcare legal changes as well as be nimble enough to undertake acquisitions if opportunities arise.
    • Private Equity is a broad term that applies to private companies as well as funds that invest into private companies. Given private markets are not required to disclose financial information, these companies and funds typically require specific skillsets in order to ensure best outcomes.
    • Investment advisors who are wealth advisors are one of the largest and most diverse investment types. Depending upon the type and size of the organization, they can range from being extremely professional with large centralized research teams to being entrepreneurial with each advisor left to make their own investment decisions. They can also represent a diversified client base from ultra high net-worth to small institutions, to wealthy individuals. Given their diversity, they are usually a reasonable investor in many different investment opportunities.
    • Private Placements are investment opportunities that are exempt from SEC registration requirements. These investment opportunities usually present higher returns for similar risk since they are often more illiquid than public security offerings. Issuers must meet certain regulatory public market registration exemptions prior to making a private placement offering.
    • Insurance companies represent very large pools of aggregated capital however, they are tightly regulated and must abide by their regulatory capital guidelines. Given the regulatory framework is based upon traditional investment metrics, they tend to be reasonably conservative. They also need to be concerned about meeting long term obligations (especially life insurance companies) so often invest with a longer term investment horizon.
    • As part of a corporate restructuring, additional capital is usually required to ensure that a company will prosper after the restructuring. Depending upon the restructuring stage, additional capital will negotiate protections from bankruptcy harm as well as try to achieve high returns for investing in a risky situation. Restructuring usually requires a high degree of structuring expertise from both the company and investor.
    • Pensions represent one of the largest global investment capital pools however, they are tightly regulated. Given their regulatory and fiduciary responsibilities, they are usually quite conservative in their investments and invest in traditional asset classes with well-regarded investment professionals. Recently, they have started to invest more of their capital in alternatives as well as in direct investments as they try to reach relatively high internal investment annuity based benchmarks.
    • Structured Finance is a specialized investment that enables issuers to fund alternative activities by moving assets off balance sheet or otherwise segregating assets and enables investors to find attractive alternative investment opportunities.   Common structured finance asset types include residential mortgages (MBS), commercial mortgages (CMBS), corporate loans (CLOs), debt instruments (CDOs), leases and receivables.   These structured transactions require specialized knowledge from both the issuer and the investor.
    • Credit is a flexible debt financing alternative which should be less expensive than equity and provide an attractive risk adjusted profile for an investor.   Credit opportunities usually include covenants and other structuring tools to create a risk profile that matches the investor expected return.
    • Global institutions are important to the capital markets since they often have diversifying requirements and expectations.
    • Banks are institutions that provide senior credit and often have multiple other investment arms including asset management, wealth management and pensions.  These can be complex institutions that require industry knowledge to understand.
    • Business Development Companies (“BDC”) are specialized closed end investment companies that usually invest in high yielding assets such as loans or other current pay investments since they must distribute 90% of their income to avoid Federal taxes at the BDC (much like REITS).

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