An investment syndicate is a temporary association of investors brought together for the purpose of pooling funds to invest in a larger investment. Investment syndicates offer individual investors more leverage to invest in larger businesses and wield more collective power. There are many investor syndicates to choose from, where individuals may invest anything between several thousand to several million of their own money with a syndicate who will then suggest investments based on their investor profile, attitude to risk and return expectations.
Previously available only to sophisticated investors and high net worth individuals, these investment syndicates are now open to a wider range of investors subject to a minimum investment. The terms of each investment vehicle vary – some are highly tax efficient, some are backed by an insurance bond guaranteeing you a minimum return of 10%, and others are secured against plots of land or property (either by a first or second mortgage).
Now that investment syndicates are more widely available, the concern is that financial advisors are now pooling their own clients to invest in syndicates, and often times, the financial advisor fails to disclose all of the material terms and possible risks of the syndicates to their clients. Investment syndicates remain complicated investment vehicles that should only be considered by sophisticated investors.
If you have questions about an investment you made in an investment syndicate, or if you believe that you are the victim of a securities fraud, the Law Offices of David A. Carter, P.A. may be able to help. David A. Carter is a securities lawyer based in Boca Raton, Florida. He reviews securities fraud cases throughout the country and Florida, including reviewing securities fraud cases in Tampa, Orlando, Jacksonville, Tallahassee, Pensacola, Miami, Fort Myers, and Fort Lauderdale. For more information on the firm’s securities fraud practice, please visit http://www.carterpa.com. To contact the Law Offices of David A. Carter, P.A., please call 561-750-6999 or email us at contact@carterpa.com.