The different types of platform
There are different types of platforms offering private placement programs (PPP), we can list them in 3 categories :
The large, official and regulated platforms :
There are 4 in the world, no more … they are all regulated by the banking and governmental authorities. They generally work directly for large global banks and on behalf of large Investment institutions.They do not advertise, only a few bankers and some agents in the world have this access. They use virtual offices , which act as a filter. Just a generic email address and a phone or a standard office, which demands the name of the person you want to contact and simply asks you to send a mail at the official email address. When you have the chance to have a reply (unsigned and unnamed) to your mail, you will be asked the name of the agent who introduces you … If you are an intermediary who proposes a file and have had the chance of arriving until then, you will simply be ask to be directed to send the file to this same address, there could be communication breakdown if you were not referred appropriately.
The sub-platforms :
These are generally financial management companies or investment funds that communicate in the name of « trading platform » and which deals with the platforms listed in the previous paragraph. They work differently by receiving the client’s financial instrument and monetizing it to buy another for a real platform. Some are regulated, some are not. Those that are not regulated usually communicate on a much higher rate of return. The risk of working with an unregulated sub-platform and ending up with its interests blocked. They are also very difficult to contact directly, but they use many brokers who communicate widely on the internet and social networks. The ones attached to a top 25 bank is usually the best to go for.
The Humanitarian foundations :
You read correctly … the humanitarian foundations … the platforms always work with one or more humanitarian foundations and reverse some of their profits, it is a kind of clearance to justify significant financial gains and a way to balance wealth by returning some of the profits to people in need. It is possible to make a private placement program directly with a humanitarian foundation, it is often even simpler than with a platform in terms of procedure and compliance because its status allows it to have more flexible regulations. The returns are exactly the same as with a platform since only the distribution path is different. Generally contracts are JVA’s « Joint Venture Agreement » with a 50/50 split of return interest.
Government recognition, its clear and legal status makes it this approach is one of the safest and simple.
At this time, we know only a few humanitarian foundations benefiting from government agreements and financial institutions.