Buying shares of private companies can be challenging. To complete a transaction, you must find a seller of the desired shares, negotiate the price, execute legal agreements and work through the issuer’s right of first refusal and other transfer requirements. Applicable securities laws must also be understood and complied with. PrivatEquity.biz has helped buyers navigate each of these steps.
Dedicated Limited Partnership:
For investors investing US $30,000 – US $1 million, we open a dedicated limited partnership (at this stage, the legal entity will be set up in Israel) for each pre-IPO share that is presented on the Arena. The innovative model of dedicated limited partnership, which is characterized by lower costs, enables accessibility to a larger market of private investors.
We offer a unique model of limited partnership investment, which includes management services provided by PrivatEquity.biz’s professional team, consisting of accountants, lawyers and analysts who provide continuous supervision and timely reports regarding the investment and its results.
The limited partnership complies with the strictest standards for financial transactions. The investment process is executed by one of Israel’s leading and most trusted firms, which manages the transfer of the dedicated limited partnership in accordance with the pre-agreed terms of the transaction. In addition, tax and accounting issues are overseen by one of Israel’s leading accounting firms.
We collect management fees in the amount of 3.5% per annum for three years in advance from the investor and 15% success fees of the profit at the time of the IPO and/or the exit event.
Important note: we open dedicated limited partnerships for each share, given the following parameters: the requested share equates to an amount that is not less than US $1 million, in terms of the number of the shares being offered, on the one hand, and on the other hand, the number of the investors will cover the amount of US $1 million at least – in other words, 35 investors investing US $30,000 to complete the quota for each such share, constitutes the maximum number of investors that we are permitted to have pursuant to the Israeli regulation for each dedicated partnership that will be set up.
A Direct Sale:
A Direct Sale for the shares that appear on the Arena, which is accompanied by us, for investors investing between US $100,000 – US $1 million – in consideration of commission in the amount of 5% from the parties – (the seller and the buyer).
The process for the purchase and transfer of the shares is performed through trustees with whom we work in collaboration.
Privatequity.biz provides all of the support services that are required for an investor, both with respect to the Company and with respect to the shareholder, for the completion of the transaction, while maintaining the balance between the privacy that is required for the seller of the shares and for the Company, and the need for transparency with the investor.
As part of our services and in order to control the release of information we have facilitated a secured data room. The room will be accessible to investors who have subjected an investment proposal and proof of funds available for purchase.
Once both documents are in order and the seller has approved the investment proposal details, Privatequity.biz will provide the investor with a password to enter the data room. There, the investor and the seller will be able to communicate, exchange and review documents, all so as to secure the investment process and the confidentiality of the transaction and the parties involved.
The Data Room is provided by Privatequity.biz with no additional charge and in order to ease the investment process and the connectivity between the parties.
An important note: buying and selling processes take time, and the average period of time up until completion of the process is approximately 3 months. We are noting this point in order so that you will have realistic expectations.