Beginner's Guide to Alternative Investments

Start here for an introduction to alternative assets, including private equity, venture capital, hedge funds, and more.

What is Private Equity?

Private equity refers to investment in private companies or buyouts of public companies, typically through funds. Learn about the structure and strategies.

Venture Capital vs. Private Equity: Key Differences

Explore how venture capital and private equity differ in their investment approach, target companies, and typical returns.

What is a Hedge Fund?

A hedge fund pools capital from accredited investors to pursue diverse and often high-risk strategies. Find out how they work and who invests.

What is a SPAC?

A SPAC (Special Purpose Acquisition Company) is a "blank check" company formed to raise money through an IPO with the goal of acquiring or merging with an existing private company.

Understanding Angel Investing

Angel investors provide early-stage funding for startups, often in exchange for equity. Learn about the opportunities and risks involved.

What is a Family Office?

A family office is a private wealth management firm established to serve one or a few ultra-high-net-worth families, handling everything from investments to tax and estate planning.

How Does a SPAC Work?

Learn the full life cycle of a SPAC—from raising capital to acquiring a target company and the implications for investors at each stage.

SPAC Sponsor vs. SPAC Underwriter: What's the Difference?

Understand the distinct roles of SPAC sponsors (who organize and lead the SPAC) and underwriters (who facilitate the IPO and fundraising process).

What is a SPAC Merger (De-SPAC Transaction)?

A "de-SPAC" transaction is when a SPAC finds and merges with a private company, taking it public in the process.

Investment Portals Explained: Crowdfunding vs. Accredited Platforms

Learn about investment portals for both non-accredited investors (crowdfunding, Reg A) and accredited-only platforms that use SPVs to aggregate capital.

Special Purpose Vehicles (SPVs) as Private Placements

Understand SPVs as a specific type of private placement, how they work in private networks and accredited investor portals, and their role in democratizing access to institutional investments.

What is Crowdfunding? (Equity, Debt, and Rewards-Based)

Crowdfunding allows startups and projects to raise small amounts of money from many people, often online, through equity, debt, or rewards-based models.

Private Placements Explained

Private placements are investment offerings that are not sold through public markets, but directly to select investors. Discover how they work and what to watch for.

Regulation A (Reg A, Reg A+) Explained

Regulation A, also called Reg A or Reg A+, is a way for companies to raise up to $75 million from both accredited and non-accredited investors, with fewer requirements than a full IPO.

Regulation D (Reg D) and Form D Filings

Regulation D provides exemptions that allow companies to raise capital privately. Form D is a notice companies file with the SEC after selling securities without registration.

Regulation CF (Crowdfunding): What Investors Should Know

Reg CF enables eligible companies to offer and sell securities through crowdfunding, subject to certain limits and investor protections.

What is a Private Placement Memorandum (PPM)?

A Private Placement Memorandum is a legal document that provides detailed information about an investment offering in a private placement, designed to protect both issuers and investors.

Differences Between Reg A, Reg D, and Reg CF

A side-by-side look at these three popular SEC exemptions for private capital raising—who can invest, how much, and what disclosures are required.

Who Qualifies as an Accredited Investor?

An accredited investor meets certain financial criteria, enabling access to private investment opportunities. See the requirements and what it means for your investment options.

What is a Qualified Purchaser?

Qualified purchasers have a higher financial threshold than accredited investors, unlocking access to additional investment vehicles, such as certain hedge funds.

Who Are SPAC Sponsors?

SPAC sponsors are the individuals or entities that create, fund, and manage a SPAC through its life cycle, seeking a successful acquisition and upside.

What Does an Underwriter Do?

Underwriters are financial institutions that manage the process of taking a company public, including pricing and selling shares to investors.

Placement Agents Explained

Placement agents connect private companies or funds with investors, often playing a crucial role in fundraising for private placements and alternative assets.

What is a Lead Investor?

A lead investor sets the terms for a deal, conducts due diligence, and often attracts other investors to participate in a funding round.

What is Venture Capital?

Venture capital funds provide capital to early-stage companies in exchange for equity, supporting innovation and startup growth.

General Partner (GP) vs. Limited Partner (LP)

In investment funds, GPs manage the fund and make decisions; LPs provide capital and have limited liability and involvement.

What is a Cap Table?

A capitalization table ("cap table") shows the ownership structure of a company, including shares, options, and investor stakes.

Preferred Stock vs. Common Stock

Learn the differences in rights, risks, and rewards between preferred and common stock for private and public companies.

Convertible Notes and SAFEs: Startup Funding Tools

Convertible notes and SAFEs are alternatives to traditional equity rounds, letting startups raise money quickly while delaying valuation until later.

What is a Term Sheet?

A term sheet is a non-binding document that outlines the key terms and conditions of a potential investment or acquisition.

Form D: What Is It and Why Does It Matter?

Form D is a filing with the SEC required for most Regulation D offerings, providing transparency about private capital raises.

Form C: For Crowdfunding

Form C is required for companies raising capital through Regulation CF (crowdfunding), providing key disclosures for investors.

What is Form 1-A?

Form 1-A is the SEC filing required for Regulation A offerings, outlining the terms of the deal and financials for potential investors.

Blue Sky Laws: State-Level Securities Regulation

Blue Sky Laws are state regulations designed to protect investors against fraud in securities offerings made within each state.

What is Due Diligence?

Due diligence is the research and verification process investors use to evaluate an opportunity before investing, including financials, legal compliance, and business risks.

Secondary Markets: Can I Sell My Shares?

Secondary markets let investors buy and sell shares of private companies before a liquidity event—though often with restrictions.

Liquidity Events: What Are They?

A liquidity event occurs when investors can cash out—commonly through a sale, IPO, SPAC merger, or secondary transaction.

What is an Initial Public Offering (IPO)?

An IPO is when a private company offers shares to the public for the first time, creating liquidity for investors and raising capital.

What Happens in a SPAC Liquidation?

If a SPAC can't find a target in time, it's liquidated, returning funds to investors. Here's what you need to know.

Co-Investment Opportunities

Co-investment allows investors to put additional capital into a deal alongside a lead investor or fund, usually with lower fees.

Lock-Up Periods Explained

A lock-up period is a set time after an offering or event when investors are restricted from selling their shares.

What is a PIPE (Private Investment in Public Equity)?

A PIPE is a private placement of shares in a publicly traded company, often used to provide capital during SPAC mergers and other deals.

Dilution: What Does It Mean for Investors?

Dilution occurs when a company issues new shares, reducing existing investors' ownership percentages. Learn when and how it happens.

Waterfall Distribution: Who Gets Paid First?

A "waterfall" explains how profits from an investment are divided among investors, with priority order based on deal terms.

Risks and Rewards of Private Market Investing

Understand the unique risks, potential returns, and key factors to consider before investing in private companies and alternative assets.

How to Evaluate an Investment Opportunity

A step-by-step guide to analyzing deals, from reviewing documents to understanding management teams and market potential.

Glossary of Investment Terms

Confused by jargon? Our glossary breaks down key terms used throughout the learning center—use it as a quick reference.