Here at National Securities we have exclusive offerings that most individual investors are unable to reach by themselves. Many private companies, especially those in Silicon Valley, limit their shareholder count and typically require a large initial investment. This prevents most investors from access to many of these companies until they go public. This is one of our unique offerings that we bring to clients which can potentially help enhance returns and gain access to specially valued share prices.
Our investment structure, which uses private funds to hold shares of these companies, takes up only one slot in the company’s capitalization tables, and allows our clients to invest in the companies by purchasing membership interests in the funds at lower dollar amounts.
When the company eventually goes public, the fund may liquidate the position or distribute the shares to members, depending upon market conditions and valuation of the investment.
*Private Shares are for qualified investors and involve a high degree of risk
National’s Private Shares team targets well known, Venture Capital Backed companies, that we anticipate are within 24 months of an Initial Public Offering.
In 2011, our clients purchased shares in Facebook through a fund structure a year before the Initial Public Offering (IPO). Since then, we have created fund interests for investment in the shares of Spotify, Airbnb, 23andMe and more.
The innovations of many of these companies have driven valuations to record levels Pre-IPO. While this creates the opportunity to access shares of truly innovative, exciting, cutting edge companies, there is inherent risk within these substantial increases in valuations.
National’s Private Shares team carefully navigates these issues to attempt to find the very best opportunities for our investors.
For more information on this service, and some of the companies that we have had access to in the past, click here or contact us.