A deal can look completely clean on paper and still carry a hidden risk investors never see. As a lawyer, Tom knows that if you don’t structure a deal correctly up front, it can bite you on the back end.
What you want is a standalone legal entity created to hold one deal, separate from any other deal and from the sponsor’s personal dealings. That’s what we do at Ticker Tape. Every investment goes into its own SPV, typically an LLC, which holds the asset until it liquidates, either because it’s sold or because the company goes public and we distribute the shares to the investors in that deal.
Key points
- Hidden structural risks can sit under a clean-looking deal.
- Each deal should sit in a standalone entity separate from other deals and the sponsor.
- Every Ticker Tape investment uses its own SPV, which holds the asset until a sale or IPO.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
