Private Equity and Venture Capital involve securities of companies that are not listed on a public exchange. Transfer of private equity is strictly regulated; therefore, any investor looking to sell his or her stake in a private company has to find a buyer in the absence of a marketplace. Returns on private equity generally occur in three ways: a merger or sale, an initial public offering, or a recapitalization. RSA has experience raising Private Equity funds for business transactions and placing these securities with accredited investors.
Be aware that these transactions require investors to be accredited to the standard of Regulation D of the Securities and Exchange Commission. These standards are as follows:
Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer or general partner of a general partner of that issuer.
Any natural person whose individual net worth or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000.
Any natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.
Any trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase of the securities is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.
Any organization that was not formed for the purpose of acquiring the securities being sold, with total assets in excess of $5,000,000.
And, any entity in which all of the equity owners are Accredited Investors.