Understand what you would own
What to understand before investing
Evaluate the business plan alongside valuation, capitalization, governance, fees, and distribution priorities. Projected results depend on assumptions that may not be achieved.
- PriorityEquity is generally subordinate to debt. Distribution rights depend on the capital structure and investment documents.
- PerformanceCash flow, distributions, and returns are not guaranteed.
- Additional capitalFurther funding needs may create capital calls, dilution, or changes to the plan.
- LiquidityTransfers may be restricted, and an investment may last longer than expected.
Discuss equity participation Review the opportunity and its terms
Consider the assumptions, risks, fees, ownership rights, and exit limitations before committing capital.