Risk & Suitability
Qualified investors participate in investments via DPEC Partners’ wholly-owned registered broker-dealer, DPEC Capital, a FINRA member firm. For every DPEC Capital client, two very important considerations must be addressed before proceeding with any investment in private equity: investment risk and suitability.
Investment Risk. There are numerous risks associated with any investment in private equity. For example, an investment in private equity is an illiquid investment. This means that your money will be tied up for an unspecified and/or indefinite period of time. This of course is very different from an investment in public equity (i.e., in the stock market) where you can generally buy or sell your stock (at current market prices) almost every business day. Another key risk associated with private equity relates to the fact that such investments are often made in new or start-up companies. Such ventures are inherently risky and a high percentage will fail. While such investments offer the potential for significant returns, this potential does not eliminate or even reduce the magnitude of the potential loss.
Accordingly, you should not consider investing in private equity unless you have substantial income or net worth, have no need for liquidity with respect to the investment, and can bear the risk of a complete loss. Because there are other risks associated with any specific private equity investment, the offering documents relating to any such investment (such as a private placement memorandum supplied to you by DPEC Capital) should be carefully read and completely understood before making any investment.
Suitability. Before a DPEC Capital registered representative will recommend that you make a private equity investment, he or she will need to know and analyze certain information about you in order to determine whether such an investment would be suitable for you. Some of the factors that are considered are:
- The investor’s age
- Total and liquid net worth and level of annual income
- Investment objectives
- Investment experience and investment sophistication
These are only some of the qualifications for suitability determination. A registered representative from our firm will contact you to discuss your suitability for this type of investment.
If these facts lead your DPEC Capital registered representative to conclude that an investment in private equity is suitable for you, only then would any private equity recommendation be made.
Even if you are prepared to accept the risks of making an investment in private equity, and even if your registered representative believes that recommending such an investment would be suitable for you, you must still qualify as an accredited investor. If you have any questions regarding the risks of investing in private equity, or whether such investing is suitable for you, or whether you qualify as an accredited investor, please feel free to contact us.
Important Disclosures
This website/email is for illustration and discussion purposes only and is not intended to be and should not be construed as an offer to sell, or a solicitation of an offer to buy, an interest in InvestProperty Group, LLC or any affiliate (the "Companies"). Any offer or solicitation of an investment in the Companies may be made only by delivery of a Confidential Offering Memorandum to qualified prospective investors. This brochure is not complete and does not contain certain material information about the Companies, including important disclosures and risk factors associated with an investment in the Companies. Certain information in this brochure has been provided by third-party sources and, although believed to be reliable, has not been independently verified and its accuracy or completeness cannot be guaranteed.
No representation is made that the Companies will or are likely to achieve their objectives or that any investor will profit or be able to avoid incurring substantial losses. This website/email does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. Before making any investment, you should thoroughly review the Companies' Confidential Offering Memorandum with your financial and tax advisors to determine whether an investment in the Companies is suitable for you in light of your financial situation. The illiquidity of and significant risks associated with an investment in the Companies makes the purchase of Shares suitable only for an investor who has substantial income or net worth, who has no need for liquidity with respect to the investment, who can bear the risk of a complete loss of the investment, who understands the nature of the risks involved and who has adequate means of providing for his or her current and foreseeable needs and personal contingencies. Investments should not be considered without first reading the Confidential Offering Memorandum which further expands on the risks involved in investing in our Companies.
Please note that the depictions in this website/email of the Algodon properties are preliminary and subject to change. No guarantee can be made that the final design or look of any of the Algodon facilities, or any part thereof, will appear as depicted herein.
