John Carl,
Editor
Feb. 14, 2025
Earlier this week Nick Hodge and Gerardo Del Real held a special live event to showcase the three new private placements they’ve added to their premium research service Private Placement Intel.
They had an outstanding year last year (with four 200%+ winners, and only one losing position) and these three new placements they’ve just announced are a strong start to 2025.
As you can see, they’ve maintained their winning streak — and there’s good reason to believe these new placements will be their best yet.
If you’re not already a member of Private Placement Intel, this is certainly an ideal moment to join.
Now, if you’re like many investors who haven’t dabbled in private investments just yet, you’ll likely have some questions.
How do they work? Who can invest in them? How do I find out more?
For those who’d like a quick overview on what it’s all about, I lay out some of the essentials below.
Private Investing 101
When most people tell you they’re investing privately, or when you read an article about venture capitalists making a mint on a private company, they’re usually referring to private placements.
Today I’ll walk you through the basics of what this means — and what they can do for you as an investor.
What is a Private Placement?
The Securities and Exchange Commission (SEC) are the ones who regulate private investments. They have specific regulations for each level of investing — and the difference between those regulations has an enormous impact on who can invest in what.
Private placements are sometimes known as “Reg D” offerings, since Regulation D of the SEC’s rules dictates how they work. They’ve been around since 1933 and are the tried-and-true standard of the private investing world. There’s no limit on the amount of capital that’s allowed to be raised, making it the “go-to” choice for private companies.
The reason they’re called private placements is because they’re not usually available to just any investor. Regulation D sets out one major requirement: they’re only available to experienced investors with a high net worth, formally known as “accredited investors.”
It’s no accident this term sounds intimidating. You need to have either a $1,000,000 net worth (not including your home) OR an income of $200k a year ($300k if you’re joining with a spouse) to qualify.
But thankfully these rules aren’t quite as scary as they sound — the main reason the SEC wrote these rules is to keep newbie investors from wandering into investments they don’t understand or can’t afford.
When you participate in a private placement, all you have to do to qualify as an official “accredited investor” is sign a simple form that confirms you match this description (or click the button, if you’re online). It’s easy and takes just a moment, you’re not asked to submit bank statements or anything like that.
Once that’s out of the way, you’re on to the next step to buy your shares, which in private placements are known as units. Some Reg D offers can only be accessed through a broker. Others can be made directly from a contact at the company. Either way, this process is not too difficult — especially compared to the potential payoff.
What is a warrant?
Many private placements also have follow-on offerings called warrants that are built right into your original purchase. These give you the right to buy shares later at a set price that, if all goes well, will be lower than the future market price.
You could almost think of it like a special coupon that gives you a discount on a future purchase. The warrant is one of the most powerful wealth-building features of private placements — and that’s why Private Placement Intel carefully selects investments that make good use of warrants.
Our Reg D expert Nick Hodge has successfully used them to make money from private placements all across the investing space — in real estate, tech, biotech, you name it. For example, Nick has used warrants to make 233% on a tech innovator, 550% on a private real estate group, and 760% on a uranium company. In each case, the warrants nearly doubled the amount of the total return.
And then our resource expert Gerardo Del Real uses warrants to maximize his profits on private junior mining companies. In many ways, junior miners deserve a category that’s all their own, because the mining industry truly has a special love for Reg D.
Not only do they make more effective use of it than most industries, but many junior miners will also issue multiple offerings a year. This gives you the opportunity to go back to the same company again… and again… slowly building a lucrative position as the opportunity grows. By the time you factor in warrants, you’ve got a robust investing ecosystem that exists almost entirely outside of the public market.
What if an investment is bought or goes public?
Another factor that can bring profitability to a Reg D investment is a buyout. Well-run private companies are prime targets for purchase and can result in an instant windfall return for investors.
The same goes for IPOs. Companies often raise private capital ahead of an IPO so that they can get their operations in tip-top shape before they go public. Investors can make immediate gains the moment shares go on sale in the major markets. Nick and Gerardo have both had great success in getting into promising companies just before their IPO. In fact, they have an entire strategy built around this that’s yielded many winners.
What if I have more questions?
We’re here to answer them! Our Director of Customer Experience Jimmy Mengel has been manning the phones all week to answer questions from investors just like you. There’s no question too big or too small, and Jimmy can help you get to the bottom of whatever you’re wondering. Even if it’s just to learn more. Give him a call at 844-334-4700.
Don’t let billionaires, hedge funds, and venture capitalists keep all of the $2.5 trillion of private equity (and the enormous profits that go with it). This is something individual investors like you and me can do — with the help of Nick and Gerardo, it’s simple and straightforward.
In short, this is your invitation to build a private fortune of your own.
Make it your own,
John Carl
Editor, Daily Profit Cycle