Praxis Opens Up Sidecar Investment Vehicle

[Jason Merchey]

Praxis Capital, with whom I'm pretty significantly invested, and whom many of you know to be a top-tier syndicator, recently opened up a "sidecar investment" vehicle with their Fund VI. I believe they raised about $50,000,000 of capital from accredited investors, but this means that a non-accredited investor could take a swing at the three or five good acquisitions they are placing in the fund. I already know of two and they seem good. 

Just thought I'd put this out there, could be a good opportunity for someone to get their feet wet!

[Brian Burke]

Originally posted by @Jason Merchey:

you would have to say No I'm sorry we don't know you already. ? That's starting to strain credulity, but I am in no way an SEC expert! 

Yeah, we do it all the time--but we don't say it that way...what we typically say is "we don't have anything available at the moment..." and then we continue the conversation and begin the process of establishing that "pre-existing relationship" for later on.  Following that is a series of email exchanges where we deliver information on us and our track record and a lot of other stuff.  Eventually another offering will materialize and by then we should know enough about the investor, and them about us, to feel comfortable proceeding.  

The challenge is we are dealing with federal laws, and they don't always seem to make sense.  But like I've heard many NASCAR drivers say in the past "the rules are what they are, and we just race within the rules."  So it is what it is...