Business
Understanding the legal aspects of investment opportunities is serious business from the investor’s perspective as well as for the sponsor of an investment. As chair of Parker McCay’s corporate department, Mariel Giletto is well-positioned to walk us through some of the steps individual investors should take when screening private placement investment opportunities and also discusses the legal aspects of capital raising. Mariel stresses the value an attorney can bring in helping the investor or sponsor get what they want out of the investment transaction without taking on avoidable liabilities. Shrewd investing and capital raising starts with understanding key concepts such as: seeking help in deciphering contract legalese and getting attorney feedback before signing documents, red flags in screening investment opportunities, partnering with a CPA to understand tax consequences, clarity in the waterfall provisions of a deal, preferred returns, subscription agreements, private placement memorandums, investor accreditation, alternative investments, the role of the deal sponsor, SEC requirements and much more!