The Exempt Market products
have distinct advantages for investors.
Our Evaluation Team
Our evaluation team seeks out private placements and joint venture opportunities for which it can design syndication strategies around and, if applicable, the team present them to our clientele. Our mandate is to research, evaluate the risk of, and deliver unique, well-designed investment opportunities to investors.
What is Alternative Investing?
There are various reasons why the exempt markets are allowed to operate outside of the public markets. One reason is that exempt markets actually represent different approaches to investing over different markets and asset classes.
One way to look at exempt market investing is that exempt market investing generally involves products that are not significantly impacted by market volatility; such as cash or real estate. There is, as well, investing by way of alternative strategies, where a different legal vehicle or structure where traditional market products are combined to bring an investment to market in a unique way either for tax, management, liquidity, legal or other regulatory reasons. These products can generate exempt market returns that are less subject to market conditions and more beneficial for some investors and diversifying their portfolios
Exempt Market Investments – Words like “Alternative Investment” is commonly used in the financial industry today. What does it really mean?
Exempt Market Investment means investing in in asset classes other than stocks, bonds, and cash called Exempt Market investments.
Exempt Market investments, whether by product or legal vehicle as noted above, are often designed from innovations and growing markets that are not as common as traditional markets. They are usually products which are not publicly-traded (i.e. on a stock exchange) stocks, bonds, and cash. Advisers have found that Exempt Market Investments can fill a niche, helping form a well-diversified investment portfolio. These market products can protect one’s portfolio from downside risk or help enhance returns. As shown below, private equity often through Exempt Investments from 2003 through 2012 vastly outperformed other forms of equity investing; however picking a winner in performance takes knowledge and researcher. That is what we do at Capital Street to bring investments to you.
The Exempt Market products have these distinct advantages for investors:
- Direct investment into assets, making them more resistant to public markets volatility
- Preservation of capital and inflation hedging by allowing you to respond quicker as you are more closely connected to your investment
- New market innovations in both product types as well as forms of investment vehicle
- Early Stage Corporate Opportunities with Growth Potential
- On a case by case basis having unique structures income and risk minimizing return sources
Why Invest In Private Companies
In modern times, companies seeking significant equity capital have turned to the public markets for financing. However, with the emergence of the Exempt Markets, many private corporations have successfully financed themselves without having to spend time and money dealing with stock promotion. Or, to put it another way, the emergence of Exempt Markets has merely formalized the sale of private products by advisers and brokers. Lloyds of London is recognized as one of the first business organizations of modern times, set up in a coffee house between business people. So exempt market products are something we have always had, but in the regulated world in which we operate, they are classified as exempt products.
The structures of these exempt market products have driven their popularity. Investors can be uncorrelated with public markets, yet have tax efficient structures and in many cases the corporate issuer enjoys a lower compliance cost than if they were public, despite the fact that the securities regulator is the same for both the public and private (exempt) products. This means that the Exempt Markets are full of corporations, both public and private, seeking capital who will focus entirely on driving the business forward, generating maximum returns for your investments.
North America has over 10 million small and medium-sized business enterprises, which, in turn, represent 25% of GDP (over $5 trillion USD) and 100 million jobs. These businesses are the main growth engine of our economy, as they stimulate innovation and grow quicker than large corporations.
Each and every day, our business advisory division consults with business owners to outline capital aggregation strategies and review sources of capital. Our evaluation team then seeks out private placements and joint venture opportunities, following that the team designs syndication strategies for these highly profitable opportunities and, if applicable, present them to our clientele. Our mandate is to research, evaluate the risk of, and deliver unique, well-designed investment opportunities to investors.