Why should I invest in private equity?
Private equity, often distributed in the form of private placements, offers investors the opportunity to invest in assets/shares that are uncorrelated/less correlated/discounted to traditional stock market investments. In addition, investors may have the unique ability to invest directly into private companies with proven track records.
Often times, private placements can lack liquidity but the benefits of portfolio diversification, longer time horizons and superior risk-adjusted returns mitigates this risk.
The securities dealt by Amuka Capital are not offered to the general public and are either exclusively offered by us or through a limited number of broker dealers.
According to modern portfolio theory, diversification mitigates portfolio volatility by spreading risk across various investments in multiple asset classes. Amuka Capital aims to leverage modern portfolio theory by offering real estate and technology private placements to help investors further diversify their portfolio and manage their risk.
What kind of securities licensing do we have?
Amuka Capital is licensed under the securities act as an Exempt Market Dealer in AB, ON and BC with a goal to be registered across Canada in the near future. For more information on what this means, please refer to the OSC website which covers this category of licensing in more detail by visiting http://www.osc.gov.on.ca/en/exempt-market.htm
In simple terms, you should only deal with registered individuals when it comes to your money and investments. Make sure to check a firm or individual registration before you invest!
What type of investments are available?
We offer following types of investments:
- Private Placements for shares/ownership OR debt in Income producing properties
- Private Placements for shares/ownership OR debt in Development & Construction projects
- Access to invest in Mortgage Investment Corporations (MICs)
- Access to some early stage venture capital deals
- Access to private placements of publicly traded companies
- Access to some growth stage venture capital and Pre-IPO opportunities
What is Amuka’s process for selecting investments?
Our underwriting group conducts a detailed review of various projects that we seek out or have come across our desk. Depending on each asset class, different metrics are applied. For more information, please contact [email protected] and one of our underwriters will schedule a call to discuss our due diligence process with you.
How long are typical investment hold periods and what are the exit strategies?
Investment hold periods vary depending on the type of investment and asset class. Generally, our investment mandate is to seek deals that can exit anywhere from 6 months to 4 years. Exit strategies need to be defined before we raise capital for an issuer and can occur by way of project completion, refinance, share buyback or sale.
What happens if the sponsor or the project goes into default?
Amuka Capital ensures strict corporate governance policies are in place whether it’s good times or bad times. There are many levels of underwriting and due diligence that go into each project which aim to protect investor capital by way of security in the deals and resolutions in the event of a default. The process will vary between the structures of the projects, the types of companies, and whether or not they are private or publicly traded. In any event, should a default occur, Amuka aims to get in front of the issue and proactively come up with a gameplan between the investors and the issuers in order to protect investor capital to the extent possible.
What are the tax implications of investing?
We try to make many of our investment offerings eligible to be held in registered accounts such as RRSPs and TFSAs. Some deals will not qualify and will need to be held in a non-registered cash or corporate account. Contact your dealing representative to help get a better understanding of whether or not the investment you are looking into can be held in registered accounts.
Amuka Capital does not provide legal or tax advice to investors. Please feel free to consult with your legal or tax professional before investing.
What is the minimum investment that Amuka will accept?
Minimum investments depend on the project but usually range between $10,000 and $25,000 per deal.