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Frequently Asked Questions
1. Why would investors be interested in CIG
private investments?
2. What kind of companies does CIG invest in?
3. What information about private investment opportunities is available
to qualified investors?
4. How do customers learn about new investment opportunities?
5. Will companies that CIG invests in seek additional rounds of private
financing?
6. How do investors track a company's performance after they make an
investment?
7. What exit strategies do you anticipate for private investments?
8. How can I learn about participating in CIG Private Investments?
9. Who is eligible to invest in CIG private investments?
10. What is the advantage of being classified as a Qualified Purchaser?
11. How does the CIG allocation process work?
12. If I have a question, is there someone I can talk with by phone?
1. Why would investors be interested in CIG private investments?
CIG uses the accumulated investment experience of its professionals to
identify private opportunities with the prospect of substantial capital
appreciation. CIG performs due diligence on each General Partner to
confirm the representations made by the GP. In addition, CIG attempts to
structure the transactions to anticipate exit events and actively
reviews the required financial reports to assess viable exit strategies.
Despite these efforts, private investments are inherently risky and
offer low liquidity.
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2. What kind of partnerships does CIG invest in?
CIG takes an opportunistic approach to investing. The majority of deals
will be in the industries in which the General Partner specializes.
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3. What information about private investment
opportunities is available to qualified investors?
CIG will provide an Offering Memorandum which details the terms of the
deal, lists the investment highlights, describes the business, strategy
and financial prospects for a company, details the management team, and
lists relevant risk factors.
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4. How do customers learn about new investment
opportunities?
CIG notifies eligible account holders of new private equity offerings
via fax or email.
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5. Will companies that CIG invests in seek additional
rounds of private financing?
Often private companies choose to raise multiple rounds of financing. It
is not certain that CIG will seek to invest in subsequent rounds or that
it will have preemptive rights to do so.
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6. How do investors track a company's performance
after they make an investment?
General Partners usually send memos twice a year to update investors on
the performance of a private investment. Investors will be notified of
these updates by email and they will be posted on the CIG Web site.
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7. What exit strategies do you anticipate for private
investments?
CIG generally expects to exit an investment opportunity within five
years. We actively review the performance of our investments to assess
the timing and nature of our exit strategy. Potential exit structures
include an IPO, a sale, or a recapitalization.
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8. How can I learn about participating in CIG Private
Investments?
To learn the mechanics of participating, please see "Getting Started".
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9. Who is eligible to invest in CIG private
investments?
CIG Private Investments area offers high-risk investments that are not
subject to SEC registration and reporting requirements. Consequently,
the investments are limited to investors who qualify as Accredited
Investors. If you have not established your status as an Accredited
Investor with us, click here to
do so.
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10. What is the advantage of being classified as a
Qualified Purchaser?
If you are a Qualified Purchaser ($5 million in net invested assets),
CIG is able to offer you a greater chance of a full allocation in CIG
private investments. The SEC limits the number of non-qualified
Accredited Investors to 100 per deal, but allows us to seek investments
from an additional 499 Qualified Purchasers. If you think you might
qualify, please click here.
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11. How does the CIG allocation process work?
See Ground Rules.
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12. If I have a question, is there someone I can talk
with by phone?
If you have a question regarding investor qualifications or the account
opening process, call 1-404-906-5443.
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