Just Disclose… Investors Are Smart Enough

A passive investor is sophisticated. We talked about it yesterday. They already have the knowledge and expertise to determine whether this is a good investment or not. So what we need to do through our documentation is to provide them with all the material facts, all the important things that an investor would consider important and just disclose that to them. Open kimonos. Here are all the risks. Here are all my conflicts. Here are all the stuff you need to give it to them. Give them to. And then the investor can look at it and say, hey, they can make an intelligent decision whether this is a good investment for them or not. They go into the investment with their eyes wide open. So you want to make sure you disclose everything. And as long as you disclose everything, you can really almost do anything you want. You can be as creative. We at Bethany Are Super Creative, I would argue that we’re probably one of the more creative firms out there because we understand that as long as we’re disclosing everything, we can do it. If you want to take 99% of the profits, knock yourself out. As long as we disclose it, nobody’s going to invest in your deal. But if you want to do it that way and structure that, as long as we’re disclosing it, that’s what we want to do.

Related Articles

Responses