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Understanding Investor Profiles with Alpha Advantage Capital

June 12, 2018

Alpha Advantage Capital, a placement agent firm in the Tampa Bay area, works with accredited investors and qualified clients to find investment opportunities meeting clients’ investment goals and needs. The thought of investments, especially non-traditional ones, may make hesitation bubble up within potential clients. For understandable reasons, too, as the investment world has seen its share of ups and downs and no one can afford to lose their savings, pensions, and other assets. There are many regulations in the investments industry, and investors need assurance that their money managers know those regulations intimately. Choosing to work with Alpha Advantage Capital affords investors, besides exciting opportunities, confidence in the firm’s expertise.

Investor Profiles

First things first, it’s important to understand just what each an accredited investor and qualified client is. Some people might fit the criteria for either one or both investment profiles but not realize it.

In order for someone to qualify as an accredited investor, s/he must provide evidence of a minimum annual income of $200,000 for the past two years. For joint income, the number goes up to $300,000. There is also the understanding that the income will either remain stable or increase. The following fall under the umbrella of accredited investors: individuals (if s/he passes the income or net worth test), banks, insurance companies, brokers, and trusts. Under Regulation D, the Securities and Exchange Commission (SEC) uses the term accredited investor as a way to classify investors meeting the aforementioned criteria in part because they’re investors not requiring all of the protection otherwise made available through regulatory disclosure filings.

Qualified clients must demonstrate proof of other criteria. Whether an individual or an entity, qualified clients must have at least $1,000,000 of assets being managed with the investment adviser subsequent to investment in the fund. Before investing in the fund, and without the value of a primary residence, one must have a net worth of at least $2,100,000 in order to be a qualified client.

Due Diligence

Alpha Advantage Capital strives to meet and exceed clients’ investment goals because the firm knows the numbers, is laser focused on results, and operates with due diligence. Both the Securities Act of 1933 and the Investment Advisers Act of 1940 are among the federal laws guiding the firm’s work. Potential clients and investors should know that both federal laws help protect them. The 1933 act came to be during the Great Depression—after the 1929 stock market crash. As a result of the act, a firm like Alpha Advantage must provide potential securities’ buyers with material information about the merits and risks before any investment is made. With a firm like Alpha Advantage Capital conducting due diligence on the investment, investor confidence stands to increase and, in turn, private offerings are more accessible. Per 1934’s Securities Exchange Act, Alpha Advantage’s representatives must be registered as brokers with the SEC and FINRA. History has demonstrated that due diligence is in investors’ best interests. While Alpha Advantage embraces unconventional investment opportunities, it attempts to do so ethically, legally, and methodically.

Choose Advantage

Alpha Advantage Capital is an ideal choice as a placement agent firm because it knows its clients’ needs. Whether accredited, qualified, or both, the boutique, third party marketer knows the intricacies of each client’s portfolio and where each client fits in. As such, when unique investment opportunities arise, the firm can strategically present them to particular clients. A Tampa-based tech startup might be a great investment for an accredited investor, but a hedge fund might only be a match for a qualified client. Beyond offering investors access to much more than traditional investments, clients can also capitalize on Alpha Advantage’s expertise working with hedge funds and family offices in various capacities.

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This post was written by Elevate, Inc.

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