Private Placement Program
A “private placement program” is an organized buy/sell investment where a PPP trader accesses discounted bank instruments, and then resells them at a higher value. Before the PPP trader purchases the discounted instrument from the bank, they get a contractual commitment from an exit buyer who agrees to buy the note at a higher value. This exit buyer is usually a PPP trader also, but they don’t have the direct connection to the bank issuing the instrument, so they buy it from another trader. In short, the entire PPP business is designed to provide private placement financing for investors who have project funding needs. Though private placement investors can earn high yields, they must realize that most proceeds must be directed towards an approved project.
In today’s private placement investment business, some people are successful, but unfortunately, most are not. The fact is, there are very few traders who are real in the PPP business and it is very tough to access them via the internet. Though we have seen private placement programs work, most private placement brokers have no real connections. Despite these negative statements about private placement, remember, you CAN be successful!
If you want to find a real private placement fund, you have to focus on education first. The PPP investors who focus on yields, rather than common sense, are never successful despite hundreds of “close” calls. The reality is, if you are looking for a PPP that trades bank instruments, you must have 50M or more in liquid assets. Even at 50M, you usually have to partner with another investor to meet the 100M minimum of most real PPP traders. All in all, make sure know the facts of private placement before you move forward, it will save you years of time waste and frustration.