Private Investments
Private investments are those not listed on public exchanges and typically not offered through chartered banks or other financial institutions making them more challenging for investors to easily access. They offer useful investment strategies for investors looking to diversify their portfolios from traditional stocks, bonds or mutual funds. Pinnacle aims to bring these opportunities to all investors through our network of Private Market Specialists.
Examples
- Public Stocks
- Bonds
- Exchange Traded Funds
- Mutual Funds
- Private Equity Funds
- Private Debt Funds
- Real Estate Investment Trusts
- Direct Company Investments
Characteristics
- Highly Liquid
- Readily available information
- Easily fluctuate due to investor trading
- Easily accessed by the average investor
- Less Liquid
- Less frequent reporting
- Less accessed by the average Investor
- May offer higher yield opportunities
Current and Previous Industry Product Experience
Self Storage
Healthcare
Tax Strategies
Private Debt
Multi-Unit Real Estate
Industrial Real Estate
Senior Living Facilities
Biotechnology
Energy Financing and Leasing
Cannabis
Private Equity
Manufacturing
How to Buy Private Investments?
Private investments can be purchased through Exempt Market Dealers, such as Pinnacle Wealth Brokers Inc., providing investors with the opportunity to participate in investment opportunities through prospectus exemptions under applicable securities laws in Canada.
Private Investments are subject to Canadian securities regulation which outlines conditions that are required of the dealer, the issuer and the investor. These regulations are aimed to protect investors.
Trends in Private Investments
Over the last decade, many pension funds and institutional investors are significantly increasing their investment holdings in Private Markets Securities. Some of the largest considerations for institutions choosing to invest in private securities includes diversification, steady income streams and absolute return mandates.
Read MoreGrowth of Private Investment Capital
Originally dominated by institutional and high net worth investors, private investments are growing in popularity amongst individual investors. As individual investors continue to diversify between privates and publics, the amount of capital raised privately continues to grow. Private companies continue to seek opportunities to raise capital without the need to go public.
Source: Private Capital Markets Association of Canada Private Exempt Financing Report 2020.
Sources: Investing Like the Harvard and Yale Endowment Funds – CAIA: Michael W. Azlen & Ilan Zermati
Institutional Strategies
Over the last decade, many pension funds and institutional investors are significantly increasing their investment holdings in Private Markets Securities. Some of the largest considerations for institutions choosing to invest in private securities includes diversification, steady income streams and absolute return mandates.
It is important to note that although institutional investors and pension plans are moving towards a higher allocation of private investment strategies, individual investors should consider their own unique risk tolerance, time horizons, and investment objectives. Other important factors include tax implications, liquidity, and risk capacity. Just like with public market investments, not all investment options are suitable for all investors.
