The Basic Requirements of Private Placement Programs

One thing you need to be aware of is that private placement programs (ppp) are not suited for most people. 

Normally, there is a lot of capital required (although some private placement programs will allow you entry with just one million dollars, as we do with a few of our programs). The investor must have strong banking relations with a major bank, a temperament that is disciplined, a view of finance that is sophisticated, be willing to listen and follow instructions with a humble attitude, the ability to make sound business decisions and be able to execute and follow through.

While this may sound simple, it's not for most people. A client cannot go into private placement programs with ego and attitude. No on will take such a client. Going into a program like this is a privilege not a right.

Generally speaking, they will not talk to anyone who cannot prove they have the investment funds and that they are who they say they are. That point is not negotiable. The people running these programs are too busy helping the many humble and responsible people who are waiting in line to get into good trades to deal with difficult personalities and bad attitudes. This applies equally to clients and brokers.

In this business, it is by invitation only which is usually offered on a personal level to known individuals who qualify and fit the mold and will follow the trader's protocol. Often, those with sufficient capital to enter private placement programs are used to being the head honcho and calling the shots in their own business, so they think they can negotiate their own deal and terms based on their own ideas and often a lack of solid understanding. They learn the hard way that with this kind of attitude, they are shown the door with no transaction and with a very special invitation not to come back again! End of story. Then they go out and complain that the trader 'didn't perform'. C'est la vie!

Another big hurdle are brokers. There is widespread mistrust among them and fear that if they present a compliance package, somebody is going to go around them. The end result, their client's package is not presented to a trader, the client misses out on a very profitable program and the broker misses out on what could be a life changing transaction, financially speaking!

Having said that, what are the financial qualifications for a qualified individual?

• $500 million USD and above are the top echelon programs.
  
• $100 million USD (or Euro) provides ample opportunities.
  
• $10 million or more: opportunities exist but often on a private basis.
  
• Under $10M is considered 'small cap' and opportunities are very rare. When they can be found they usually require special arrangements, but companies like us can handle them.