When a company moves from private to public, valuation accretion immediately allows shareholders to take advantage of what is often referred to as “private to public valuation arbitrage.” A unique, but valuable opportunity exists for investors looking to take advantage of pre-IPO opportunities in the form of crowdfunding, venture and PIPE investing for private companies looking to enter the public markets.
Inherent in any investment made is the opportunity for investors to take advantage of and maximize capital appreciation that comes with an initial stock offering. Equity investments in later-stage companies that are typically backed by venture capital can, if properly structured, provide a nice capital appreciation gain right out of the gate.
The typical return for any target company remains north of 2x over a several year holding period. We’re not interested in schemes that encourage “pump-and-dump” of client stock. Instead, we encourage persistent and long-standing value creation that is obtained through access to the public market. Investors may seek opportunity to work directly with startups or companies that lack legitimate customers and revenue. While such opportunities exist, our focus is to seek for deals that focus on long-term value creation.
We work with both investors and shareholders in private to public transactions across a broad spectrum of companies and industries. We’re interested in sophisticated and qualified investors with an eye on the opportunities that consistently cross our desk. Interested investors are invited to get in touch with our team.