Private Placement Programs, Do they Really Exist?Submitted by Before we get to the answer, let’s define the term “private placement program”. Though there are a number of different types of investments that are referred to as “private placement”, such as pre-IPO funding, managed Forex, equity investing, or organized investment pools, we are referring to the process of trading discounted bank instruments (MTN’s,BG’s) to generate high profits. This is a niche that has flooded with potential clients lately, but the question is, are any of these clients ever successful?
This is a question we get every day from people who are new to the private placement business. Most of the people we speak to are just beginning to do their research, and want to make sure they are not wasting their time with something that’s “too good to be true”.
When you go to government fraud prevention sites, they say that private placement programs don’t exist, but when you read forums and speak to the brokers and traders, they say they do. Who is really disclosing the full truth? Well, let’s take a look at the incentives behind each of their claims.
The brokers are convinced private placement exists, but then again, they are the ones in line to get “huge commissions” on transactions.
The regulatory agencies swear private placement doesn’t exist, but then again, if they openly supported it, the equity and traditional investment markets would collapse, and fraud would rise in the private markets.
When you look at it, they both have strong motives for each of their positions, but there is only 1 truth…
The fact is, private placement programs are REAL and DO EXIST. The problem is, they are extremely tough to screen, and even harder to succeed with. Over the last 10 years the once unknown private placement business has spread all over the internet, which has lead to a flood of inexperienced brokers into the market. When you combine the recent increase in participation, with private nature of these programs, it can be a recipe for disaster if you are not properly informed.
We are not writing this article to state an opinion, but rather to state fact. We have closed a private placement transaction, and we can confirm they do exist. The only thing to remember is this, it took us over 7 years, and thousands of contacts to find one program that performed. We literally contacted over 20,000 people who were in the business, and now we work with less than 10. In short, think of this as a search to find a needle in 100 haystacks, not as a path to immediate wealth.
For more information, please read our other articles to learn more of our inside tips and experience withPrivate Placement Programs, Bank Instruments, and all of the other Alternative Investment Markets