E26: Revisit E1 Intro to Alternative Assets - Deep Dive into Due Diligence Basics

Summary

In this episode of Alt Investing Made Easy, Sarah Florer and Roland Wiederaenders delve into the essentials of due diligence for alternative assets. They discuss the significance of the Private Placement Memorandum (PPM), the Operating Agreement, and the Subscription Agreement, emphasizing the importance of understanding the terms and conditions of each document. The conversation also covers evaluating the track record of investment managers, assessing team dynamics, and the necessity of clear communication regarding investment strategies and risks. The hosts encourage investors to ask probing questions and to be diligent in their research to make informed investment decisions.

Sponsored by:
Real Advisers, Austin, Texas

Special thanks to:

Grable Martin PLLC 

Red Sun Creative, Austin, Texas

For more information: AltInvestingMadeEasy.com

Please contact us: [e-mail]

Roland Wiederanders: [e-mail] 

Sarah Florer: [e-mail]

Takeaways

• Due diligence is critical when investing in alternative assets.
• The Private Placement Memorandum (PPM) is a key disclosure document.
• Investors should not be intimidated by lengthy documents.
• Asking questions is essential during the due diligence process.
• The Operating Agreement outlines the economic terms of the investment.
• The Subscription Agreement serves as evidence of the investment commitment.
• Evaluating the track record of managers is crucial for trust.
• Understanding team dynamics can mitigate risks associated with key personnel.
• Investment strategies should be clearly communicated by managers.
• Risk evaluation is a fundamental part of the investment process.

Chapters

00:00 Introduction to Due Diligence in Alternative Assets

02:06 Understanding the Private Placement Memorandum (PPM)

08:33 The Importance of the Operating Agreement

11:40 Navigating the Subscription Agreement

17:14 Evaluating Track Records of Investment Managers

23:37 Assessing Team Dynamics and Management Structure

30:02 Investment Strategies and Risk Evaluation

Disclaimer: “This production is for educational purposes only and is not intended as investment or legal advice.”

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Creators and Guests

Host

Roland Wiederaenders

Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate securities attorney with expertise in private investment funds, corporate/securities issues, mergers and acquisitions, partnership structuring, and federal income tax matters. Roland is also a member of Grable Martin PLLC.

Host

Sarah Florer

Co-founder of the Alt Investing Made Easy podcast, investment advisor, and corporate attorney with expertise in corporate finance and securities, structuring and restructuring, and commercial matters. Sarah is also a member of Grable Martin PLLC.

Producer

Anthony Carrano

Co-founder of the Alt Investing Made Easy podcast, fractional Chief Marketing Officer, entrepreneur, and Managing Partner at Dunamis Marketing.

What is Alt Investing Made Easy?

Join attorneys Sarah Florer and Roland Roland Wiederaenders as they navigate through the maze of market jargon and reveal the secrets of diversifying your portfolio. Whether you're a seasoned investor or taking your first step toward financial freedom, we empower you with the knowledge and insights you need to thrive in the dynamic landscape of alternative assets. Get ready to transform how you invest, inspiring a new way of thinking about your finances, and discover how to make your money work harder. Dive in with us, and let's make investing in alternative assets easy, giving you the confidence to navigate the financial landscape, one episode at a time.