Private placements are tough. Here’s why:
Investors are preoccupied–particularly individual accredited investors.
Marketing deals is difficult–both preparation and outreach require learned skills that are typically not internal to company founders and management.
Regulation D 506(c) may have improved the environment for private placements, but syndicating deals is one way to greatly improve the success of your next private equity deal. Proper, successful syndication of private placements requires the following:
The right network–Ideally access to a large group of Registered Investment Advisors (RIAs) with active, high-net worth clients are the best way to syndicate private placements. Such a network can funnel active, quality private placement deals to their clients as an opportunity to gain exposure to PPMs as part of an overall, well-rounded investment strategy. What that looks like will be very custom to the individual investor.
The right technology--Syndicating requires the right technology, including mult-tenant