Private Placement Due Diligence: Key Questions To Ask When Evaluating Opportunistic Funds

by Russell Putnam

The economic fallout and reduction in travel caused by the COVID-19 pandemic have caused significant dislocation within the hospitality sector. In doing so, this has created opportunities for investors to acquire hotel investments from distressed sellers and lenders at attractive prices. Over[...]

Filed Under: Due Diligence, Qualified Opportunity Funds

Top Five Attributes of a Successful Alternative Investment Sponsor

by Kemp H. Hanley

During my tenure at FactRight, we have conducted operational due diligence on more than 150 alternative investment sponsors. Some have been very large, some very small, and many in between. I consider myself very fortunate because I enjoy the work. I enjoy getting to know the people, learning[...]

Filed Under: Due Diligence, Best Business Practices

Private Placement Due Diligence: Your Guide to 506(b) vs. 506(c)

by Kate Stephany

If you are thinking about putting an investor in a private placement one of the first questions you should ask is:

Filed Under: Due Diligence, Best Business Practices, Regulation D, Private Placements

What's in FINRA's 2021 Examination and Risk Monitoring Program Report That Could Impact Your Firm's Private Placement Offerings?

by Lynn Lawson

Lynn Lawson, Esq. is the founder of Advertising Regulatory Consulting, LLC, which provides advertising and marketing guidance to broker-dealers, registered investment advisors, product sponsors, and financial services industry associations. Prior to starting Advertising Regulatory Consulting,[...]

Filed Under: Due Diligence, Best Business Practices

Key Due Diligence Considerations for UPREIT Exit Transactions for 1031 DST Programs

by Brandon Raatikka

Many sponsors of DST programs are including section 721 UPREIT options in their potential exit strategies. Several factors are likely contributing to this evolution.

Filed Under: Due Diligence, REITs, Real Estate, Best Business Practices

Highlights from FactRight's 2021 Spring Due Diligence Conference

by Jessica Ryan

Here at FactRight, we want to take a moment to say thank you to all the financial advisory firms and sponsors alike, who took time out of their busy schedules to join us last week in Scottsdale for FactRight's 2021 Spring Due Diligence Conference. With record-breaking attendance, we couldn't be[...]

Filed Under: Due Diligence

NFTs: A New Class of Alternative Investments?

by Gavin Aydt

The newest craze in the world of digital assets, cryptocurrencies, and blockchain is non-fungible tokens (NFTs). NFTs are unique digital assets that represent tangible or intangible items. The tokens are used to provide verification of ownership over the assets and prove their authenticity and[...]

Filed Under: Due Diligence

Can UPREITs Allow You To Avoid Paying Capital Gains Tax Indefinitely?

by Gail Schneck

FactRight is seeing a trend in non-traded real estate investment trusts (REITs) that are seeking to diversify their funding sources by offering 1031 exchange investment opportunities with the potential to be UPREITed into the sponsoring REIT at some later date. The UPREIT transaction would be[...]

Filed Under: Due Diligence, REITs, Real Estate, Best Business Practices

At The Center Of It All: The Pro Forma Model

by Kevin Kirkeby

As far as true confessions go, this is rather lightweight: I love spreadsheets and financial models. There’s something about the designing, linking and debugging that is satisfying, even after several decades. There are always new analytic approaches and different formulas, not to mention Excel[...]

Filed Under: Due Diligence, Best Business Practices

Private Placement Due Diligence - Evaluating Alignment of Interests in Private Investment Programs

by Russell Putnam

Broker-dealers and RIAs need to have a robust due diligence process to satisfy regulatory requirements and make informed investment decisions with respect to private placements. And let’s face it, thorough due diligence of private placements does not always take a straightforward route.[...]

Filed Under: Due Diligence, Best Business Practices