Fractional OWNERSHIP in Private businesses
Invest
Private Equity. The Leading Asset Class.
For decades, Private Equity (PE) has provided outsized returns. With PE fund minimums typically at $1M, many investors are excluded. With such outperformance over other asset classes, it’s no surprise why institutional investors such as pension funds, sovereign wealth funds, large endowments, and high net worth Individuals allocate 25% - 50% of their investment portfolio to PE. Yet very few Accredited Investors have exposure to PE due to the high minimum investments PE funds require. PE Gate is here to bridge the gap with fractional business ownership, requiring a minimum investment starting at only $50,000.
Benefit Of Investing Through PE Gate
Democratize PE
ACCESS & AUTONOMY
FRACTIONAL BUSINESS OWNERSHIP
LIQUIDITY FOR ALL
Access to Vetted Investments Low investment minimums starting at $50k, allowing a larger audience of accredited investors access to this alternative asset class.
Investment Autonomy & Direct Business Ownership Each investor makes their investment / exit decision on a deal-by-deal basis with direct ownership in the business they invest in. Although PE Gate acts as the GP, investors have full autonomy on invest decisions posted on PE Gate’s platform.
Traditional PE funds: Fund managers make all investment or divestment decisions. Investors are not involved in the investment process.
Secondary Market / Liquidity PE Gate’s proprietary secondary market provides investors the flexibility to anonymously offer shares, via a blind or open bidding process, after a six month hold period.
Traditional PE funds: PE funds typically require minimum hold periods of seven years and impose penalties and/or limit investors’ ability to withdraw their funds.
No Fees Prior to Investment No committed capital or management fees; only performance-based fees charged. PE Gate does not require financial commitments from investors and does not charge management fees. Only performance-based fees are charged when distributions are made to investors.
Transparency Online platform gives you access to:
On-demand portfolio performance tracking
Data room containing financial, legal, and other documents
Message centre for announcements
Tax Advantage Investments generally qualify for Lifetime Capital Gains Exemption of over C$900,000* per individual investor. Non-resident investors may pay no capital gains taxes, depending on jurisdiction*.
Investor Protection As a registered Exempt Market Dealer with the Ontario Securities Commission, integrity is at the core of PE Gate’s mission.
Impact Help PE Gate positively impact small businesses and communities
* As of 2022; Depending on individual tax situation; Investors should seek own tax advice.
“My first investment through PE Gate’s platform was seamless and easy. From browsing opportunities, researching, funding, and tracking.”
How It Works
Browse Opportunities Scroll through and watch videos on vetted private businesses across different industries. All opportunities seen on PE Gate’s platform are ready for investment.
Research Sign NDA for any particular opportunity to attain an Initial Investment Memo to help guide your investment decision.
Non-Binding Commitment Enter the dollar amount you are willing to commit.
Video Conference Join a live Zoom call with other interested investors to ask questions to the lead GP of the deal.
Fund Legal & Diligence Fees Those interested in investing will transfer their portion (pro-rata) of legal / due diligence costs.
Final Decision for Investment Final Offering Memorandum, and legal agreements are shared with investors and final investment decision is made. If the investors decide not to proceed, and their position is taken by another investor, their non-binding commitment fee is refunded. If the investment does not close, investors lose their non-binding commitments.
Track Access on-demand portfolio performance tracking and data room containing financial, legal, and other documents.
Sell Shares Each investor has autonomy over their investment horizon. 6-month after an investment is made, you can offer your shares, via a blind or open bidding process, to co-investors on the deal. If shares are not sold, you can offer your shares to the remaining network of accredited investors on PE Gate’s platform.
Investment Strategy
Situation Owner-managers looking for partial exit or retirement. Management buy-outs
Industry Agnostic. Industries that are of interest to private funds
Stake Minority, majority or convertible debt
Stage Cash flow positive, established businesses with strong reputations
EBITDA $300k-$1.5M for majority stakes or EBITDA $1M-$3M for minority stakes.
Investment Horizon typically long-term, however, investors can exit individually after 6 month hold period
Target IRR Internal rates of return exceeding 25%
Leverage Not dependant on leverage, will use if available