InvestX Financial gives qualified retail investors access to investments private equity; and more specifically, brand-name, late-stage private equity deals.
InvestX specifically provides access to private growth equity. Private growth equity is a type of PE that focuses on late-stage, rapidly growing companies that have gone through the business risk curve.
InvestX selects private companies for investment that meet our "InvestX 3-Factor Formula" - a minimum of $1 billion valuation, a 30-50% growth rate, and evidence of a liquidity event (i.e., an IPO or trade sale/acquisition) within 12-36 months. Unless a company meets this criteria, it will not be available for investment through the InvestX platform.
You must be an accredited investor and provide documentation proving your accredited investor status, such as two years' worth of tax returns or a brokerage statement.
It is an investor that meets one of the following criteria:
Below are other examples of accredited investors:
The minimum investment size to invest in a private company through InvestX is $20,000.
Management fee - PE fund managers typically receive a small management fee, which is around 1-2%. This fee covers the cost of managing and investing in the private company.
Private equity investments are meant to be longer-term investments and the investor is often rewarded with a substantial return for their patience.
There is no set length of time for every private equity investment. Each investment has it’s own "lock up," or term, which is the length of the investment. With private equity, the term is usually between 1-10 years.
At InvestX, we provide access to late-stage private companies with exit potential within 12-36 months, either through an IPO event or a acquisition/trade sale. It is important to note that after an IPO, there is typically a 6-month underwriter lockup period, meaning that investors must wait for 6 months after an IPO before they can sell their shares.
An investor must complete and sign a confidentiality agreement and subscription documents.
As an investor in a private equity limited partnership (called the limited partner) you are afforded certain protections through the limited partnership agreement and the subscription agreement.