How to Invest in a Privately Held Company

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Invest in a privately held company by brokering a deal with the owners of the company to work out what type of investment the company needs. Find a privately held company that is need of some resource in order to invest with help from an investments manager in this free video on investing.

Part of the Video Series: Stocks, Bonds & Investments
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Video Transcript

So how to invest in a privately held company? Investing in a privately held company is investing in a company that doesn't have stock or shares that it is use on in a market. It's just the privately held maybe, could be a small corporation, could be a sole proprietorship. But if you want to invest in that company, that really is something that's much more grass roots; it's something that you need to sit down and talk with the company about that; maybe the owner, that maybe someone who works with the owner. And to invest in that company, really it's got to be something where they have a need and you have assets or some sort or some sort of resource that you can give them so they can fulfill that need. If you can achieve that agreement, then you may have something to work with. But with the privately held company, they really have to have a need. They have to want to get that investment, whether that'd be a loan, much like a bond, they would pay interest or ownership, where you would buy a piece of the company but you'd also share on the liability and of the, and of the things the things that could work against the company.


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