PRIVATE PLACEMENT INVESTING - PROS & CONS
With any decision in life, it is always important to weigh the risk and reward. By doing so, you can take a step back and determine if things feel right to you, or not. Though this seems like a basic concept, it is CRITICAL to understand, and is the difference between success and failure. In this writing, Inside Trade LLC have listed the pros and cons of the private placement industry for their readers. We are providing it here for EDUCATIONAL purposes. This will allow you to see if private placement is right for you, while also giving you facts on the PPP business. Scroll down and take a look below! Pros & Cons Of The Private Placement Business.
1. Possible High Yields: In private placement, you can get higher yields than you would ever expect. In addition, there are pre-determined contracts with buyers which minimize risk for bank instrument traders (MTN, BG), and their investors.
2. Privately Multiply Money: If you are someone with high net worth, it is always nice to profit in a private setting. Unlike public investments, private investing can protect the interests and information of the investor while they grow their wealth.
3. Fund Large Projects: If you are a wealthy investor with projects, private placement is a great way to achieve your goals. In fact, project funding is the main point of private placement investments. If you're an investor with 100M+ in liquid assets, you could be funding Billion Dollar projects in no time.
4. No Risk if Real Trader: If a private placement trader is real, he will have a contractual commitment with someone to purchase their bank instrument at a higher value. Without this pre-defined commitment, the private placement trader will not even purchase the instrument from the bank. In short, the contract with the "commitment holder" eliminates all risk for the trader.
5. Meet Most Powerful in World: There is a very small circle of successful people in the private placement business, and most of them are immensely wealthy. If you are lucky enough to find a real private placement deal, you could become connected with some of the most powerful people in the world. This could include those with political ties, and other connections that could benefit you in the future.
1. Most Trades Don’t Perform: As you should know by now, most private placement investments do not perform as promised. If you go into a transaction thinking differently, you will always be disappointed. Stay true to yourself, and you will have a far better chance of succeeding.
2. Scam or Real Trader: The problem with private placement is, it’s very hard to determine if a program is real or not! Despite what many brokers may claim, less than 1% of what you will find is real. Keep this in mind, or you could become a victim of time waste or investment fraud.
3. Takes Millions to Even Apply: If you are an investor with less than $50M, you are most likely chasing a dream. Unfortunately, bank instruments are usually $100M+, so trying to get into a PPP with $50M or less is almost impossible.
4. All Investor Information Upfront: Before you enter a private placement investment, you MUST first provide a bank statement, passport, and compliance documents. If you provide this to the wrong person, your information could be sent all over the internet to hundreds of brokers. This is rarely problematic, but it can lead to identity theft or worse in some cases. NOTE: North Sea Company's role as a Private Asset Manager is to receive and review confidential information, preform a preliminary review for accuracy and potential fraudulent documents and then pass it on to a predetermined trader.
5. Upfront Fees for MT 760/ MT542: Despite what many private placement brokers will tell you, there are fees for blocking funds via MT 760. Let’s face it, banks are in the business of making money, and they will NOT meet rare requests (MT 760, SBLC) for free! After reviewing some of the pros and cons we listed, remember, each private placement deal has its own variables. Despite the fact that private placement investments are rare to find, they are REAL, and CAN create huge profits. No matter what anyone else may say, YOU can be successful in private placement, it just takes persistence and realism. Note: Internal Blocking (No SWIFTS) can be utilized. In addition, it should be understood that a SWIFT, RWA and other up-front fees are bank fees. Never are any up-front fees given to a Trade Group or Broker/Facilitator. NEVER
PRIVATE & CONFIDENTIAL BASICS
ON PPPs AND FAQs
Private Placement Programs, better known as "PPP"?
Private Placement Programs or High Yield Investment Programs are highly CONFIDENTIAL and ‘private, by invitation only’ based on the purchase/sale of bank financial instruments (the composed portfolio for the client). These financial instruments are bought fresh-cut (NEWLY ISSUED) with a significant discount on their face value, then are resold at a higher price in the secondary market. The difference between the sale price and the purchase price is the trader / investor's gain. These programs are offered to clients with high spending power and can only be executed by Traders with a license to carry out such operations. An important part of the returns are destined to humanitarian causes and to the financing of huge business projects.
Few investors know about these programs? Are they new?
These programs are not publicly known, and only a very small group of investors that own funds or Bank Instruments may have access to them, solely and exclusively by invitation. They are not new, they are more than 60 years old. FYI: READ "TIER 1 TRADING ORIGIN" found on the PPP Overview Two page, herein.
Are they safe?
The Private Placement Programs imply no risk for the investor. The purchase/sale of the composed portfolio is 100% "risk free" provided that the Trader is guaranteed the exit to the instrument that was previously acquired. The Trader, will guarantee such exit by contract and therefore there won’t be any risks for the investor. Before the start of the program, the Trader will "prepare" such program planning the future purchases and sales and knowing beforehand the benefits that each of them will bring. In a second phase the program will be run, which means nothing but carrying out the purchases/sales that were previously planned and negotiated with the cutting houses. The Tier 1, Platinum trades are 100% safe as these are supervised by almost every legislative body there is!!
Should I deliver or transfer my own funds to the Trader?
NEVER!!! Not in any case! The funds will always remain on the investor’s bank account. To carry out the program it will only be necessary to block them (simply leave them there!!) This blocking will remain for the length of the trade program.
Do I run any risks by submitting my Due Diligence documents & why are they so important?
You are not under any risk when your documents are submitted directly to the trade platform. Beware, however, if an intermediary is "Shopping" on your behalf or does not work directly with the platform coordinator. The client's DD presentation is imperative and important since it is the only way to check and verify the quality of the clients funds or assets. In this business the investor always has to take the first step by providing the required documentation to avoid falling into the "soliciting" rules. The POF (Proof of Funds) will be issued by the Bank where the investor has the resources deposited, demonstrating their quality and amount, but does not enable ANYONE to move them nor dispose of them.
What procedure should I follow to deliver these documents?
Once all the required documentation is submitted (SET Compliance + Bank Documentation), they proceed to verify the funds/assets the client brings and to the subsequent Due Diligence (clients under study for acceptance). Once these preliminary investigations are successfully completed, the Program Manager will contact the client for a formal presentation and also to agree on how to block the funds. Then, the investor will receive a pre-contract to be signed and later sent to the Traders office. Then, it will be the Trader in person who will contact the client.
How and when do I collect my interests or profits?
Yields are typically collected weekly, every 10 Days or Once a month at the bank designated by the client to the Trader. Ever since the collection of the first profit, this capital will be completely free and available for the client.
Can I partially or totally remove the invested amount?
The invested capital will remain blocked for the length of the program.
How should my funds be?
In 100% full ownership!! No commitment to your bank. Clear, clean and with a non-criminal origin. For every asset the location of the deposited resources should appear clearly stated by the bank in question. If at the time of verification, there is any doubt on this matter, the transaction will be directly dismissed.
Can I ask for references from previous transactions?
NO, as it represents a violation of the Rules of Confidentiality and of the Non-Discovery Agreement. These Programs are 100% CONFIDENTIAL - NOT TO BE DISCLOSED EVER & by invitation ONLY !
NORTH SEA COMPANY, is not a licensed securities dealer, broker or US investment adviser, or certified public accountant. None of the information contained herein constitutes a solicitation for any purpose in any form or content, nor an offer to sell and/or buy securities and or properties. Any completed transaction is strictly one of private placement, and is in no way relying upon, or relating to the United States of America Securities act of 1933, as amended, or related regulations. Merely describing the details of an existing private placement program does not constitute an offer or solicitation of any kind and, if presented, is done so as a request for information.