Work Models

Overview

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 through each of these steps.

Dedicated Limited Partnership:

For investors investing US $30,000 – US $1 million, we open a dedicated limited partnership with respect to the shares of each pre-IPO target company 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 and enables the investors to diversify their investment portfolio to include a mix of such companies.

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 with respect to 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 from the investor in the amount of 3.5% per annum for three years in advance, and thereafter on an annual basis and 15% success fees of the profit at the time of the IPO and/or the exit event.

Important note: we open dedicated a limited partnerships with respect to a specific target company’s shares, given the following parameters: (a) the total requested demands for participation in the limited partnership equate to an amount that is not less than US $1 million of underlying shares in the aggregate, and (b) the number of the investors subscribing for the partnership is no higher than 50 investors , being 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 presented by us, for investors purchasing shares with a value of US $100,000 – US $1 million – is subject to a fee in the amount of 5% from the parties – (to be bourn equally by each of 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 help facilitate 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 to manage expectations.

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