An equity fund is a form of mutual fund or exchange-traded fund (ETF) that invests in stocks rather than bonds. You may not be familiar with equity funds as a novice investor, but understanding about them should be one of your first financial goals. You will be more informed when investing if you understand the basics of how they work…
An income fund, like a mutual fund or an exchange-traded fund (ETF), focuses on current income rather than capital gain or appreciation. The word “current income” refers to money that is received on a regular basis rather than being deferred until a later period. Income fund compensation, for example, is usually paid on a monthly or quarterly basis. Income funds…
What Is an Option Income Fund? Option income funds, also known as option income closed-end funds (OI-CEFs), are a type of pooled investment that aims to create current income for its owners by receiving premiums from selling options contracts. Option income can be created by selling delta-neutral options techniques like straddles or strangles, writing covered calls, or employing other more…
The idea of hotels has existed for many years. Since the times of stagecoaches, overland investigation, and urban development, business people throughout the places have plunged into inn proprietorship. They detected the potential, financial chance, reason, developing business sectors, and esteem. In the advanced friendliness industry, not all that much has changed after all these years. So what are the…
Investing in the property is a tiresome task that needs extensive research, and you can’t invest without having guidance from the experts in the field. Mack Capital is a private firm that helps individuals and companies in their investing decisions. The experts at Mack Capital are authorities in the financial field and help you in your investment and financial plannings.…
TAMPs, what does that mean? Over the past decade, there has been a dramatic shift among institutions and financial planners. In the past, both corporate and individual planners would manage the investments for their clients. That’s changed as most planners now are using outsourced solutions, whether they’re TAMPs, sub-advisors, or third-party asset managers. At Mack Capital, we provide these solutions…
You’ve probably heard the term “private equity” before. Indeed, Mack Capital is a private equity firm. What you may not know, however, is that there are nine variations of private equity strategies, each with advantages and disadvantages for investors. When looking for an investment firm, you’ll want to pick one that offers the type of private equity that best suits…
You may have heard the term “accredited investor” before. For example, you might have seen a discussion about someone investing in a company, and it comes up that they are accredited. Being an accredited investor can open up a world of opportunities that are not available to non-accredited individuals. In this post, let’s explore more about what it means to…
Taking a company public is no small endeavor. If you’ve been following the markets, you have likely heard of SPACs (Special Purpose Acquisition Companies). This new method for going public has taken the financial world by storm, and practically everyone in Silicon Valley has either raised one or wants to create one.
Historically, when companies wanted to go public, they’d typically need to do a traditional IPO. Now, companies have three options: traditional IPO, direct listing, or SPAC. Each one has its advantages and disadvantages for taking a company public. Let’s (briefly) explore what each option is, and when a company might prefer one or the other.
Traditional IPO
The traditional IPO process is the way that companies have raised capital for decades. The process is straightforward and well-known. A company or investment bank will start the process by filing an S-1. This form is necessary for every single U.S. company that wants a listing on a national exchange. The company files it typically in anticipation of or conjunction with an IPO.
A company intending to go public then partners with an investment bank to underwrite the shares and sell them to prospective investors. The investment bank essentially handpicks the price and allocation, intending to have 97% of investors interested in the IPO and a 30x over-subscribe rate.
For the most part, mom and pop investors cannot invest in these IPOs. Only the best clients can. Given these aggressive targets, IPOs often result in a large first-trading-day “pop.” A good, recent example of this was nCino, which had an IPO of $248 million and saw a rise of 150% on its first trading day
