The Exempt Market products
have distinct advantages for investors.
Our Evaluation Team
Our evaluation team seeks out private placements, joint venture opportunities and design 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
Have you ever wondered why events in remote corners of the world have sometimes-drastic effects on stocks back home? How do you diversify your investment portfolio to better protect your holdings from market swings?
Capital markets have come up with varying solutions to this conundrum, one of which is exempt market securities.
Companies that seek capital in the public markets are required to file prospectuses (full disclosure documents) with regulators and wait for their approval before they can begin trading. Recently, private companies who comply with applicable regulations have been exempted from having to file a prospectus before seeking investors; thus, exempt market dealing and exempt market investing.
Risk and reward are related, in that generally the higher the risk the higher the reward. This is also true in investing, where the goal is to match the risk of the investment to the reward sought in the investor or capital portfolio. All investment opportunities, even government-backed securities, carry risk.
Despite the fact that they are not connected to the public market, Exempt Market products have risks as well. Some of the common risks in Exempt Market Products are
- Low public disclosure for private companies.
- Lack of a regulator-cleared Offering Memorandum and Prospectus
- Newer, and therefore less experienced, businesses and company management
- Lack of a public market to trade securities in
- Generally lesser governance standards
- Individual investments may have very specific business and market risks inherent to the investment
At Capital Street Group our team is trained to assist you in identifying the key risks of an investment and assessing if that risk is suitable for your needs and investment goals. The fact that exempt products are not in a trading status, may decrease risk by not being subject to market volatility and reputed market manipulation, along with having a lower compliance cost than if the vehicle of product was in the public markets, despite being regulated by the same regulatory body.