Investor Challenges Some accredited investors are in a position to prudently allocate a portion of their capital to private placements and other investments that have potential for above market returns. Typically, the investor faces two key obstacles. The first is sourcing quality opportunities. The second is assessing the risk / reward trade-offs on each opportunity. Both activities are often beyond the investor’s available time, skill set or relationship network. To be effective, the investor needs to ‘piggy back’ the work of a competent group of professionals whose interests align as closely as possible with their own.
Capital Markets Culture Integral’s investment banking team source and screen transactions for institutional and ultra-high-net worth individuals. The team is highly selective in taking on assignments in the companies they underwrite. The culture of Integral’s Capital Markets group emphasizes long term investment success over short term fee generation and market share.
Who Participates? Participations in these transactions are offered to accredited clients who have expressed genuine interest and have the financial and risk capacity to prudently take on the investment. These participations tend to be client-initiated.
Co-Invest With Institutional Investors Those private clients that do participate benefit from the work that Integral does in qualifying these opportunities for its institutional clients;
- Access to quality opportunities: highly selective deal screening process
- Access to early round transactions: founders round / seed round / first investor round
- Rigorous due diligence: extensive ‘scrub’ of management, Board, assets, business prospects
- Risk mitigation: co-investing with professionals / investors who maintain close ties to issuers
Transaction Types A wide range of transactions types come available for both private and public companies;
- private placements
- subscription receipt financings
- pre-IPO financing
- bridge financings
- convertible debentures
- go-private financings
- asset level joint ventures
- opportunistic secondary market trades
- Oil + Gas – exploration +production; service
- Metal + Mining: exploration; development; production; service
- Diversified Industries
ACCREDITED INVESTOR – DEFINED
The accredited Investor definition is prescribed by securities law. The definitive list is extensive, but the individual typically needs to meet one of the following requirements in order to be considered an Accredited Investor;
- An individual who, either living alone or with a spouse, beneficially owns, directly or indirectly, financial assets (as defined by Canadian Securities Law) having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000
- An individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
- An individual who, either alone or with a spouse, has net assets of at least $5,000,000.