Frequently Asked Questions
New to the world of secondary markets and alternative investments? We're here to help! Please take a moment to review our list of frequently asked questions below.
Many observers have noted that one of the major weakness of alternative asset investing has been the lack of a functioning secondary market. To this point, alternative assets have generally been considered illiquid, or unable to be easily resold. This serves to limit the investor base to only those investors who can take on longer-term investments.
At CFX Markets, we’re working to change that. With our experience in the financial markets and alternative asset industries, we know that alternative assets need a secondary market to reach their full potential. We developed CFX Markets to deal with the lack of liquidity and work with some of the top issuers and platforms in the industry to make liquidity not only possible but practical as well. CFX Markets is a leading independent secondary market auction provider for the alternative asset industry.
An investor may want to sell their securities for any number of reasons including:
- an unexpected life event that requires cash
- an investment fund that needs to be harvested for LPs
- financial performance of the company
- high demand from potential secondary buyers
- Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income.
- Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
- Be a bank, insurance company, registered investment company, business development company, or small business investment company.
- Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
- Be a business in which all the equity owners are accredited investors.
- Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million.
There are many methods to qualify as an accredited investor, including providing supporting documentation of your assets or income, providing a letter from a licensed professional certifying your status as an accredited investor, or allowing third-party vendors to verify your status as an accredited investor. In some instances, a detailed bio stating your source of wealth, employment history, and income may also suffice.
For trusts, LLCs and other entities, we are required to collect the relevant legal agreements to ensure you are legally permitted to direct investments.
For additional information about individual and entity accreditation requirements, please review the guidelines on the SEC website or email us at email@example.com.
For Tender Offer Participants
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