We are often contacted by project developers, investors, entrepreneurs and brokers who are looking to raise capital, or who are looking for investment opportunities that provide higher returns for themselves or their clients. This initial inquiry often leads to a discussion of private placement programs and trade platforms.
Are Private Placement Programs - Trade Platforms Real or a Scam?
The first question we are usually asked is: are private placement programs (also known as PPPs) and trade platforms real or are they a scam? In short, they are real, but not in the way they are often described. There are many myths about these programs that we will attempt to dispel.
Perhaps the most common misconception regarding private placement programs and trade platforms is that they are the exclusive domain of the ultra rich through secretive, invitation-only investments. Often, clients are told that they must pay large, upfront fees to gain access to these exclusive instruments. In addition, they are told they must submit POF (proof of funds), a CIS (client information summary) or KYC (know your client) package, along with their passport. Nothing could be further from the truth.
How Private Placement Programs-Trade Platforms Work
Many private placement programs and trade platforms are legitimate investment vehicles that are accessible to a wide variety of investors. An excellent white paper on private placement programs and trade platforms was written by MB Assets of Memphis, TN–a copy of which is available for download above. It should be noted that we have no relationship with MB Assets or its principals—their white paper is provided for educational purposes only and should not be construed as an endorsement of the firm.
