Archive for January, 2018

Private Equity

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The term “private equity” is thrown around a lot today, but most individuals have a foggy understanding of what the term actually means. In the broadest sense, private equity refers to money invested in private companies. A private equity firm, then, is a company that specializes in raising and managing investments in various, private business opportunities. This is accomplished by an investment manager who makes the principle investments in a business opportunity through a variety of strategies. Some of the common strategies used include leveraged buyouts, venture capital and growth capital.
But where how does a manager receive capital to invest? Typically a private equity firm will raise pools of capital from numerous sources like individuals, private groups and companies. These sources will come to the private equity firm in search of high returns. The firms receive a slice of the profits earned from the investments made, but the sources also pay the firm a management fee for their financial insight.
With their capital in hand, the private equity firms then acquire a position in a company in the hopes of maximizing the value of that investment. By implementing one of the different investment or management strategies the firm works to make the business more profitable then when they initially invested.
FNEX offers private equity firms the opportunity to source potential investments. If you are interested in evaluating investment opportunities, become a member of FNEX today.

Managed Futures

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While managed futures may not get as much coverage as many of the other more traditional investment options, they represent a viable asset for investment professionals. Managed futures comprise of professional money managers known as commodity trading advisors (CTAs) who manage client assets within the global futures markets. These funds take both long and short positions in futures contracts and other options within the global commodities market. “Long” position includes buying at a price higher than the current price, while “short” position entails buying at price lower than the current price.
CTA managers employ various trading strategies, like trend following, in order to make money of these fluctuating market prices. For example a CTA manager may analyze market information and determine that the price of corn will go down in the near future. The manager will then engage in the process of “shorting” a corn commodities contract by purchasing the corn at a lower price than it is currently listed. If the price of corn does in fact go down the manager has the ability to sell at that price and make a sufficient profit. The ability for high returns is one of the main reasons the managed futures market has seen increased popularity in recent years.
FNEX offers investors the opportunity to source potential investments through managed futures accounts. If you are interested in evaluating managed futures accounts, become a member of FNEX today.

Private Security Marketplace

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FNEX’s private security marketplace allows hedge funds, investment banks, and corporations the opportunity raise capital for their business through connecting with investors. However, to comprehend what the offerings listed on FNEX are comprised of requires an understanding of the concepts of debt and equity. Debt and equity are the two main sources of capital available to new and existing businesses.

Debt takes the form of loans that must be paid back over time. Companies borrow money over the short or long term from various sources including private banks and public governmental agencies like the Small Business Administration (SBA). While the company usually is required to pay interest, the main advantage of debt financing is that interest paid on b loans is generally tax deductible. Additionally, a loan is merely an obligation of repayment along with an expectation of interest and does not provide the lender an ownership stake in the business.

Equity, however, takes the form of money obtained from investors in exchange for an ownership share in the business. The money obtained does not include an obligation of repayment. Instead, the investor’s benefit is the potential to reclaim their investment out of future profits of the company. Equity investment may come from many forms including individual owners, angel investors, private equity firms, or venture capital firms.

FNEX allows for both debt and equity offerings through its private securities marketplace. Companies can offer both accredited and institutional invests the opportunity to provide debt or equity financing for their business in the form of private placement securities. Take part in the $1.7 trillion private securities marketplace on FNEX.

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