Although The Preferred Investment is a matchmaking platform and consequently is not a Crowdfunding Platform, with the User being liable to act with the due diligence upon accessing the latter through the link provided, we want to help our Users and be completely transparent as regards the profitability expected and the potential risks associated with the investment in 506(c) offerings. For this reason, we encourage all our Users to read the risks summarized below and to inform themselves of the details of those opportunities that may be of interest to them.
The Preferred Investment does not provide any financial advice and therefore it is not subject to Title V of the Securities Market Act. The Preferred Investment is not considered to be an Investment Service Company.
The information included in this web is of general nature and does not constitute specific advice. Nor is it a recommendation to invest. If you have any doubt as to the suitability of an investment, you must look for independent financial advice.
The information included in this website on companies and their 506(c) offerings is taken directly their company and, therefore, we do not guarantee its veracity or accuracy, and we do not assume any liability for any damage and/or prejudice and/or profit not earned by the User or any other third party harmed as a consequence thereof. The User is responsible for verifying the numbers, conditions and information of each opportunity from the company before taking any investment decision.
The Preferred Investment does not support or guarantee the investment opportunities presented herein, but rather we only provide their information on our platform for your convenience.
As with any other investment, 506(c) offerings involve a series of inherent risks. Investing in private equity may be highly profitable, but it also involves a series of potential risks the investor must know and assume. The User is responsible for carefully evaluating their financial situation and financial knowledge before committing funds to a 506(c). If you do not completely understand the risks involved in the investments, you should not invest.
The Preferred Investment recommends all the Users intending to invest to carefully read the specific terms and clauses of each investment.
With any investment, the value of the entity may be affected upwards or downwards by a wide range of external factors (of a political, financial and social nature) and internal factors. Private equity investments are not unrelated to this reality, and consequently there is a risk of an investment returning less than the original investment made.
You should take into account that the target profitability and the information provided by the companies on each Opportunity are mere business plans. In other words, they are optimistic forecasts and, as such, they may suffer fluctuations in their progress and obtain returns different from those expected during the development of the company.
Remember that past results and yields are not indicative of future yields.
In general, dividends are not guaranteed and may differ from the terms agreed at the start of the investment. If a company does not reach its expected revenue targets for a given period, dividends may not be paid during such period.
You should take into account that the profitability offered by the companies are always an estimate and they show a target value. Although on some occasions they manage to exceed such targets and offer an even higher profitability, they may also be lower than expected or even be cancelled.
Investments in 506(c) vary in structure, holding period and conditions. Many companies include in their conditions the prohibition on selling to third parties, and although some do offer a secondary market where the investors may offer their shares for the sale to other members before reaching the term for the divestment, there is no guarantee of finding a purchaser or managing to sell quickly unless accepting a substantial loss of value. In the case of agreements of account sharing, the situation is similar and it is hard to undo a position.
In general terms, the investor should consider their investment to be illiquid.
The Preferred Investment does not provide any personal tax advice, and we recommend our Users to look for professional tax advice both before and after investing so as to be up to date with the appropriate tax authorities.
Although in The Preferred Investment we try to provide the most information possible to our Users on each company and the applicable rules and regulations, we limit ourselves to publishing the information sent by third parties, and therefore the investor is responsible for verifying and consulting in detail the conditions of each investment opportunity with the company of origin before investing.