Private Investments can offer significant benefits when combined in an individual's portfolio which include:

• Portfolio Diversification 
  • The single biggest benefit of adding private investments to a portfolio is their diversification features. These include potential diversification of asset classes, return profiles, investment horizons, and pricing methodologies. The ultimate diversification feature of adding private investments to a portfolio depends on each individuals’ existing investment portfolio and which private investments are added. 
• Private Investments Are Not Easily Traded 
  • Most investors underperform the broader market, this is because it is difficult to differentiate between emotions and fact. Less liquidity in private investments means it is more difficult to react in a short-term mindset, rather invest for the long term allowing the investments to perform to their mandate rather than “timing the market”. It is important to note that most private investments offered by Pinnacle do feature a limited ability to redeem your investment subject to each terms and conditions of the investment.  
• Private Investments Have Different Pricing Features 
  • Private investments are priced less frequently than those of public securities and private investments are priced internally rather than by the market, which limits the amount of excess volatility effecting price. The result is the appearance of a more stable investment price. It is important to note that this does not mean the investment is less risky.  
• May Offer Unique Investment Opportunities  
  • Pinnacle continually seeks unique opportunities to increase wealth. Some private investment opportunities cater to a niche investment thesis, strategy or structure which is hard to replicate in a public company investment.  
• May Offer Higher Yield Opportunities 
  • Given the illiquidity of private investments, defined investment horizons and investment size, certain private investments may offer yield in excess of what is available in the public markets. Some people call this the illiquidity premium.
• Private Investments Have An Absolute Return Mandate 
  • Private investment funds such as private equity and debt have pre-defined investment horizons, return thresholds and strategies which are not subject to the performance of public markets and benchmarks. This allows management teams to focus on executing their business and providing investor returns.

In addition to investing in Cash or Non-Registered accounts, many of our offerings are also eligible for the following:

Registered Accounts:

• TFSA – A Tax Free Savings Account is an account where contributions, interest earned, dividends and/or capital gains are not taxable and can be withdrawn tax free. Contributions are subject to annual limits and unused contribution room ( as well withdrawals) is carried forward to future years.
• RRSP – Registered Retirement Savings Plan is a savings plan where contributions are tax-deferred and provides a tax deduction for income tax filing. Contributions are subject to annual limits based on your own specific income, tax and previous contributions.
• SRSP – Spousal Retirement Savings Plans allow a higher earning spouse (contributor) to take advantage of the tax deduction benefit of a RRSP while helping their spouse (account owner) build their retirement savings. The contributor gets the tax deduction for income tax filing. 
• RESP – Registered Education Savings Plan, is designed to save for your child's post secondary education and contributions are tax deferred. The Canadian Education Savings Grant (CESG) offers up to 20% matching contributions annually. 
• LIRA – Locked In Retirement Accounts are designed to hold pension funds outside of a pension plan that do not permit withdrawals before retirement, except under special circumstances. 
• RDSP – Registered Disability Savings Plan is an account designed to help families and individuals with a disability save for long term financial goals. Contributions are not tax-deductible however are tax deferred., The Government of Canada provides a matching grant called the Canada Disability Savings Grant to RDSP contributors.   
• IPP - Individual Pension Plans are designed to offer tax and retirement savings solutions for individuals 40 years and older who have T4 income exceeding $100,000 and have maximized their RRSP and other pension contribution room.

Corporate Accounts

Corporate investment accounts are great for businesses that have cash reserves or are interested in investing. This means you have the opportunity for growth instead of letting the money sit in a bank account.

Joint Accounts 

A bank account or brokerage account owned by more than one person. Married couples often have joint accounts, as do business partners and aging parents who are looking for assistance with their finances from adult children.

When considering private investment opportunities Pinnacle believes there are a number of key factors to highlight in order to properly select an investment. These include:

• Capital Growth;
• Diversification by product, industry and risk;
• Liquidity;
• Risk appetite
• Income Generation; and
• Tax Consequences.

Private investments also have their own unique risk considerations that investors should be aware of and discuss with a qualified dealing representative which includes, but is not limited to, having less liquidity than public investments, and having higher fees. Investors should refer to the investment’s offering documents for a full disclosure of these considerations.

Eligible Investors

• Net worth over $400,000 or individual income over $75,000 or combined with spouse $125,000*

OR

Accredited Investors

• Financial assets over $1 Million or individual income over $200,000 or combined with spouse $300,000*

*Income consistent for the previous 2 years with the expectation it will remain or increase. Refer to the OMC exemption for full details on eligibility.

Private investments behave differently than public investments. They are less frequently traded and without the support of a public market, they are not as liquid. There are also a number of key differences the investor will see when investing in private securities. The information provided by private investments is also less frequent than those of public securities, so it is important to consider who you are investing with and how you will be kept informed.

Reporting Requirements for Public vs. Private Investments

Public companies are referred to as "reporting issuers" whose securities generally trade on a stock exchange, such as the Toronto Stock Exchange. "Reporting issuers”, among other things, are required:

• to file a prospectus that is reviewed and receipted (a preliminary and final prospectus) by the Applicable Securities Commissions; and
• are subject to a continuous disclosure regime that requires them to make various public filings, such as annual and interim financial statements, management information circulars for special and general meetings and material change reports.

An investor can find a reporting issuer’s publicly available information on a website maintained by the Canadian Securities Administrators System for Electronic Document Analysis and Retrieval (SEDAR) at https://www.sedar.com. 

In contrast, a “private company” (non-reporting issuer) generally has less disclosure requirements about the company’s business and affairs and its securities do not trade on a stock exchange. Although a private company does not file a prospectus with a securities commission, they offer the sales of securities under the Offering Memorandum (OM) exemption (the OM Exemption -  an exemption from the prospectus requirement under Applicable Securities Law and have to complete a prescribed form of offering document which is filed (but not reviewed or receipted) by a Securities Commission. Securities Commissions may review and comment on an OM after it is filed as part of its continuous review of a private company's offering documents. 

Only recently have OMs sold under the OM Exemption been made available on SEDAR which can be searched for such documents as well as any related OM Marketing Materials.