Questions When Raising Private Capital
Couldn't our Company find financing by itself?
Many companies try to raise private capital on their own by going directly to an investor. However, unless one truly knows the market (i.e. industry likes/dislikes, investment size and structure preferences, etc.), this can be a frustrating, time consuming approach. We understand where the dollars are being invested, who is doing the investing and what strategic elements a fund can bring to the table to benefit our clients. We do this while you do what you are best at – running your business.
When companies do obtain funding on their own, how can they be sure they have secured a competitive price and structure? Without a professional conducting a "private auction" to determine the most competitive pricing and structure, it’s unlikely that you will strike the best deal the private markets have to offer.
How long does it take to raise private investment capital?
Typically, the entire private capital raising process can be executed in a timeframe as short as six months; some engagements may take longer.
Are there different types and sources of private investment?
Yes. There are a wide variety of investment alternatives varying from subordinated debt to common equity, with a myriad of options in between. Our worldwide network of financing sources include private equity groups, venture funds, SBIC’s, pension funds and insurance companies in addition to strategic partners. Depending upon the capital needs and objectives of our client, there are advantages and disadvantages associated with each type of investment and funding source.
Which financing structure is most appropriate?
Each financing is unique, with market structures and pricing in constant change. Unlike public markets, private markets are strictly negotiated. To be assured of the most attractive pricing, terms, and conditions, a seasoned intermediary should be engaged to manage a financial auction on your behalf. Our experience will help you achieve the transaction that best meets your business and personal objectives.
How do you "pre-qualify" investors?
Our extensive database includes funding sources as well as strategic partners from around the world. We have identified investors in terms of their investment interest, size and experience within a particular industry. This allows a more effective and efficient capital raising engagement by taking your opportunity only to sources that have previously invested or have shown an interest in investing in companies like yours.
How is our Company's confidentiality maintained?
Information regarding your Company’s operations is shared with a minimum number of pre-qualified potential investors. Potential investors are required to execute a legally binding confidentiality agreement prior to receiving any information regarding your Company.
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