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Institutional investors include the following organizations: credit unions, banks, large funds such as a mutual or hedge fund, venture capital funds, insurance companies, and pension funds. Institutional investors exert a significant influence on the market, both in a positive and negative way.
Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It helps the company to raise funds for capital more quickly than through a public issue.
Six Tips for Effectively Pitching to Institutional Investors1) Create a game plan that prioritizes your prospects. Before embarking on a raise, you need a plan.2) Know your audience.3) Invest time preparing for meetings.4) Know what separates you from the pack.5) Beware of cliches.6) Come across as a fiduciary.
Key terms of the Investment AgreementParties. Existing shareholders and the company.Tranche payments.Completion conditions initial tranche.Initial tranche completion mechanics.Completion conditions subsequent tranches.Subsequent tranche completion mechanics.Warranties.Investor consent regime.More items...?
If you are the client, some of the basic terms you will want to bear in mind are:Authority. The agreement will grant the adviser discretionary or non-discretionary authority.Investment Guidelines.Fees and Expenses.Use of Pooled Vehicles and Other Managers.Custody.Reporting.Brokerage.Voting/Class Actions.More items...?