Last Thursday, software firm ZoomInfo Technologies went public at a share price of $21. A few hours later, it was up 90%.
The day before, Warner Music Group (WMG) had its initial public offering (IPO) at $25 per share. It rocketed 20% on the first day of trading.
And late last month, online insurance broker SelectQuote went public at $20 a share. Last week, it traded as high as $29.
After a slow start to the year due to the coronavirus, the IPO market is back with a bang…
The broad market sell-off in March forced companies to put their plans on ice and await more favorable conditions.
But with the country now reopening, expect this market to heat up again. And this will be a huge tailwind for the private equity market.
Let me explain…
Getting in Early Means Big Profits
Now, we don’t know how successful ZoomInfo, WMG, or SelectQuote will be. And to be honest, it really doesn’t matter.
You see, even if these companies make 10 times their IPO values, it’s peanuts compared to what early investors will make.
Take ZoomInfo, for example. Early private investors included Great Hill Partners. It invested in ZoomInfo in 2017, when it was worth only $240 million.
After its successful IPO, ZoomInfo is now valued at $8 billion. That’s an increase of about 3,230% in three years.
We saw a similar situation with WMG. Billionaire investor Len Blavatnik’s venture capital firm Access Industries bought WMG in 2011, when it was valued at $3.3 billion.
Since going public last week, WMG has a $15 billion valuation… marking a return of 355%.
As you can see, private investors in these companies stand to make huge gains when they go public.
Here’s the thing…
In the past, these kinds of deals were only available to Wall Street. Now, that’s all changing.
You see, recent rule changes by the Securities and Exchange Commission (SEC) now allow ordinary investors to invest in private companies before they go public…
They’re called Regulation A+ offerings. And they’re open to the general public – not just accredited investors. In some cases, you can buy into these private deals with minimums of $500–1,000.
At PBRG, we call them “sweetheart deals.” And they just got a huge tailwind…
Last week, the Trump administration issued guidance allowing 401(k) plans to invest in buyout firms. SEC Chairman Jay Clayton says the new rules will allow retail investors access to asset classes once largely reserved for the wealthy.
That should sound familiar to longtime readers…
Don’t Settle for Wall Street’s Crumbs
Daily editor Teeka Tiwari is one of the first editors in the business to bring these “sweetheart deals” to the public.
And for the past year, he’s been sharing a backdoor into this hidden market, too. Here’s Teeka…
Wall Street has duped Main Street out of millions by using this trick – without you even realizing it.
Just look at eBay’s IPO… Main Street investors saw a 163% gain on IPO day, when eBay hit $47. Yet insiders like Benchmark got pre-IPO shares for only 11 cents. That means these pre-IPO investors saw a 42,627% gain in just one day. That’s the difference between turning $1,000 into $2,630 and $1,000 into $427,270. And the list goes on and on…
Friends, Wall Street has conditioned you to think making a double or triple in a day is a lot. They’re crumbs insiders throw your way so they can offload their stock with a 42,627% gain onto you – and have you feeling like you got a great deal. And I just don’t think it’s fair.
We don’t think it’s fair either…
That’s why Teeka’s exposing Wall Street’s dirty secrets. So you can use that information to turn the tables in your favor…
And thanks to his extensive network of insiders, venture capitalists (VCs), and CEOs… he’s in a unique position to give his Palm Beach Venture subscribers access to deals they’d never even know about – let alone be able to get into.
With the IPO boom set to resume again, it’s essential to have an allocation to the private markets. So consider investing up to 5% of your portfolio in private companies.
Now, you can search for private deals yourself on crowdfunding platforms like SeedInvest and MicroVentures. They list dozens of startup companies raising money from the general public. In some cases, you can start with as little as $100.
But remember, this asset class comes with risk. You only need a small stake for potential gains of 10x, 50x, 100x, or more.
Managing Editor, Palm Beach Daily
P.S. Even with the new rules, VCs still jealously guard the best opportunities. They employ armies of analysts to hunt them down. And then, they fill up all the funding rounds so no one else can get in.
For ordinary investors, it’s like trying to find a needle in a haystack.
That’s why Teeka and his team have been working their network of insiders for the past year – looking for the best private deals for 2020. And that led to his No. 1 wealth-building opportunity of the year.