A Must Read If Considering Investing in Private Investments
- Mar 2, 2017
- 2 min read
David Graham of Triview Capital Ltd. (an Exempt Market Dealer) deals in only Private Investments, also known as Private Equity.
The Exempt Market sector within the Canadian Investment Industry is a fast growing area where “issuers” (investments) do not need to (are exempt) file a preliminary or final prospectus but an Offering Memorandum and/or a Subscription Agreement to offer their securities. Investors must “qualify” under their province of residence securities commission’s rules and regulations as to legally invest.
All investors should know that each private investment is of varying quality and have different hold periods before liquidity is offered. Each investment must be judged on its own merits….just like publicly traded investments.
Each investor must “qualify” as an “Accredited Investor” OR an “Eligible Investor” under the applicable Provincial Securities Commission and the Canadian Securities Administrators (CSA) rules and regulations to invest. An Accredited Investor is a person who has personal income of at least $200,000, or combined income with their spouse of $300,000, in the past 2 years and who reasonably expects to meet or exceed the applicable amount in the current calendar year OR a person with net financial assets of at least $1 million OR a person with a total net worth of at least $5 million. An Eligible Investor is a person who has personal income of at least $75,000, or combined income with their spouse of $125,000, in the past 2 years and who reasonably expects to meet or exceed the applicable amount in the current calendar year OR a person with a total net worth of $400,000.
Each investment offered by Tri View Capital Ltd. is vetted and approved by the Investment Review Committee.
Most private investments are structured as Income Trust Units or Limited Partnership Units, not common or preferred shares or bonds.
Private Investments mainly differ from Publicly Traded Investments in that they offer less liquidity…..often only after a hold period is met (often 3-5 years) or the project/business is sold. You can’t buy or sell these investments with a click of a mouse.
Most of Triview Capital’s private investments are allowed to be held in “registered” accounts such as RRSPs, TFSAs, RRIFs, etc.
The minimum investment through David Graham is $25,000.
Comments