Frequently Asked Questions

How do I invest and what is the process? You may invest using a cheque/draft or within a “registered account” (RRSP, TFSA, RRIF, etc.).Not all investments allow for investment via a “registered account.”Initially, with Mr. Graham you will complete the “Investor Application Form” and fill in the “investment offering documents” as well as the Trust Company’s “registered investment” documents if necessary.NOTE: Each investment has a CLOSING (processing of investor documents) about once every 3-4 weeks.This is done in batches for operations efficiencies sake and so the “investment issuer” receives one large cheque rather than many small ones from the Exempt Market Dealer such as Triview Capital.

1. When I invest, where does my money go? Does all my money go into the investment? Your cheque/draft is couriered by Mr. Graham to the Triview Capital head office in Calgary.It may take up to 4 weeks for your cheque to be processed (cashed) due to the timing of the particular investments “closing.” If your investment involves a “registered investment” TRANSFER then the funds/money is sent from the Relinquishing Institution to the Trust Company that we have chosen together to use.YES, all of the investor’s money goes towards the investment.NO money is held back or not invested as to cover any fees or commissions.If investing $100,000 then the full $100,000 goes into the chosen investment.

2. Once I invest, how/when will I get my money back? Depending on the investment(s) chosen, the investor will usually have to wait 3 - 5 years before any “liquidity” is offered.Some investments do allow for “early redemption” but for a fee depending on how long the investor has owned the investment.Understandably, the company that has been invested in needs the funds to operate the business and comes to rely upon that capital.

3. How safe is the investment? Just like publicly traded investments, each private investment must be judged on its own merits.Every investment is different.Mr. Graham will go over all the potential risks and returns of each investment with every investor.From early stage tech start-ups to mature real estate investments, each investment has its own particular set of risks. Few investments are risk free. Mr. Graham specializes in lower risk real estate and hard asset based investments that have consistent, reliable and regular cash distributions as well as good potential for capital gains.

4. Are the “targeted” rates of return guaranteed? No. Just like any other “non-guaranteed” investment the “targeted/expected” rates of return within the Exempt Market are not guaranteed.The Canadian Exempt Market’s Issuers (investments) uses the term “targeted” as to make it clear to investors that this is not a guaranteed rate of return but more of an expected and probable rate of return if things goes as expected.The rate of return may be lower, higher or the exact “targeted” rate of return.Mr. Graham only deals with “issuers” that have a solid long term track record of meeting or exceeding the “targeted” annual rate of return.Past returns are no guarantee of future results.

5. Are there annual fees to be paid like with mutual funds? Possibly. Most management fees are imbedded within the operations of the investment. Unlike mutual funds or any other managed investment, the “issuers” run the business with the use of the capital raised and pay things such as salaries, building rent, heat, hydro, etc. So yes, the money does come from the investor group but a set management fee is not charged after the resulting gross yields are established. Thus a stated “target” yield of 8.0% is what the investor would receive not 8.0% MINUS a management fee…….like most mutual funds or managed accounts.

1. Can I sell my investment early? Possibly but sometimes not.If allowed, then the investor will usually pay an “early redemption fee.”Some “issuers” offer early redemptions but for a fee.The ones that do, usually have a 1% - 5% fee (calculated only on the initial investment amount) within the first 1 - 5 years of ownership. This fee decreases after each 12 month hold period expires.

2. How often is the interest, dividend or return of capital distributions paid out? The “investment issuers” that do have a set regular distribution usually pay it out each month or quarter. Most offer the distribution to be paid directly into a bank account or to be reinvested into more units of the investment……often at a discount. Statistically about 50% of investors chose to receive the cash payout while the other 50% choses to reinvest their distributions.

3. What if Triview Capital ceases operations? Your investment is “direct” with the investment issuer.Triview Capital only facilitates the transaction. You receive a copy of the investment certificate and the investment issuer’s law firm holds the original investment certificate.There is no risk to the investor if Triview Capital ceases to operate. Triview Capital and the investment issuers do not send out regular statements.If you do invest via a registered account (RRSP, TFSA, RRIF, etc.), the trust company holding the investment will send out a regular statement…..usually quarterly or semi-annually.

#privateequity #exemptmarket #TriviewCapital