Below are general risk warnings to consider when investing directly in unlisted investments. Any investment you make as a result of an introduction made through this platform is subject to your own independent decision making and negotiation away from the platform. Investure does not provide any services that could be considered to be advice; the below is to be considered purely as a guide and is not an exhaustive list of all risks. Other risks may become evident even if not foreseen.
Potential investors should note that an investment made as a result of an introduction made through this platform is at your own risk and there can be no assurance that any appreciation in value will occur. The value of investments and any income from them can fluctuate and may fall and there is no certainty that an investor will get back any part of their investment. Any investments that may be made as a result of an introduction through this platform should be viewed as a long term and illiquid investment and the investor should seek independent advice if they feel they are unable to make an informed decision.
The price which investors may realise for their investments and the timing of any such realisation may be influenced by a large number of factors, some of which are specific to the investment and others of which are extraneous. The ability of an investor to sell shares will depend on there being a willing buyer for such shares at an acceptable price and it might be difficult for an investor to realise their investment.
Loss of Capital
Investing in unlisted securities has a significantly higher loss of capital than investments in listed securities. Many unlisted companies fail, and if you invest directly into a single unlisted company it is significantly more likely that you will lose all of your invested capital than that you will see a return of capital or a profit. You should not invest more money in unlisted companies than you can afford to lose without altering your standard of living and you should always seek to achieve diversification.
Any investment you make in an unlisted company is potentially subject to dilution if the business raises additional capital at a later date or grants options (or similar rights to acquire shares) to employees (or other connected parties) of the company.
Investing in unlisted companies should only be done as part of a diversified portfolio. You should consider investing relatively small amounts in multiple unlisted securities rather than concentrating your focus on a small number of transactions. You should also consider the proportion of your wealth that you allocate to unlisted securities and diversify across both illiquid and liquid assets. We suggest you seek independent advice if you are unsure about the appropriate level of diversification for you.
Dependence on the Directors
The success, or lack thereof, of many unlisted securities, will depend in part upon the ability of their directors to develop and maintain a strategy that achieves the company's investment objectives.
Shares in unlisted securities are not and will not be listed on a recognised market in the short to medium term and a secondary market in such shares is not expected to develop. Consequently, it may be difficult for an investor to sell shares and investors may receive less than the amount invested. Share prices may also be subject to fluctuation.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
Forecasts are not a reliable indicator of future performance and should only as a guide for your own due diligence process.