Arjent's Private Placements desk provides opportunities for investments in companies looking for private funding
Arjent's Private Placements desk provides opportunities for investments in companies who are looking for private funding. We will typically consider the following types of transactions:
- pre IPO (initial public offering) where we see a potentially attractive arbitrage between the private value of the company and its competitors;
- an early round of financing or bridge financing leading to a private sale;
- PIPE transaction (Private Investment in Public Equity), raising growth capital for a publicly listed company.
These types of investments are higher risk but carry the potential for significantly higher returns when compared with traditional direct equity investments.
We thoroughly review many developing companies, typically avoiding the very early stage seed and venture capital opportunities. We favour those with an established business and proven trading history, offering an attractive IRR (Internal Rate of Return).
The common feature of the firms for whom we raise capital is that they are at a key stage in their development and with the correct funding and guidance can become, we believe, a significant force in their marketplace, as well as potentially delivering outsized returns for investors. Our expertise lies in identifying issuers whose enterprise value falls beneath the radar screens of the largest investment banks.
We have developed an extensive global network of Private Equity boutiques and Investment Bankers who can bring the calibre of deals to which our clients are accustomed. These are usually institutional deals where our investors can invest alongside and on the same terms as institutions and hedge funds. It is very rare in the global markets that private investors can participate in this way in private placements without a prohibitive minimum investment criterion.
For all potential opportunities, we scrutinize company financial statements, commission specialist credit history checks, meet company directors and observe company operations, taking legal advice prior to selection. The process also involves in-depth consideration of the advantages and risks the investment will bring to our clients and whether the opportunity would serve their interests. In certain cases, a representative from the private equity boutique or investment banking network who brought the deal to us will take a position on the board of the company, to represent investor interests.