Structured Solutions allows National’s clients access to exciting, innovative, well-known private companies (Pre-IPO). Many private companies, especially those in Silicon Valley, limit their shareholder count and typically require a large initial investment. This process prevents most investors from investing in many of these companies until they go public.
A Formula for Success
Our investment structure, which uses private funds to hold shares of these companies, takes up only one slot in the company’s capitalization tables, and allows our clients to invest in the companies by purchasing membership interests in the funds at lower dollar amounts.
When the company eventually goes public, the fund may liquidate the position or distribute the shares to members, depending upon market conditions and valuation of the investment.
National’s Structured Solutions team targets well known, Venture Capital Backed companies, that we anticipate are within 24 months of an Initial Public Offering.
A History of Performance
In 2011, our clients purchased shares in Facebook through a fund structure a year before the Initial Public Offering (IPO). Since then, we have created fund interests for investment in the shares of Lyft, Spotify, Magic Leap, SNAP, Wheels up and Palantir.
The innovations of many of these companies have driven valuations to record levels Pre-IPO. While this creates the opportunity to access shares of truly innovative, exciting, cutting edge companies, there is inherent risk within these substantial increases in valuations.
National’s Structured Solutions Team carefully navigates these issues to attempt to find the very best opportunities for our investors.
If you would like to learn more about our Structured Solutions team, or you are interested in potential future transactions, contact National’s Relationship Team or your National Advisor.