This article reflects its original publication date. Programme figures, entry routes, counterparties and availability mentioned here are historical, and must be confirmed against current written terms. Start with the current review checklist.
In February, I argued that deals in this space rarely die from market risk. They die from bad processes, from broker chains, fake mandates, discount hunters and principals who control nothing.
The position
Four months on, here is what that has looked like in practice, with all names removed.
A technical report supporting a mining asset turned out to be years out of date and unusable for any serious investor. The document itself looked plausible. The giveaway came when nobody in the chain could answer five basic ownership questions about the asset. We sent the questions. The silence answered them.
A company we work with was impersonated by someone raising money on its name. An investor paid out before anyone checked. The paperwork failed verification with the issuing authority within days of being examined. A cease and desist followed, but the money had already moved.
What to consider
Several wallets arrived for review that were leased or borrowed. One was caught mid-process by a compliance team, which then required a fresh wallet and a documented test transfer before anything could continue. The delay cost weeks. Honest disclosure on day one would have cost nothing.
The lesson has not changed since February. Verification before engagement. Principal-led entry only. Strict onboarding. Controlled custody. Around nine of every ten introductions we receive do not survive that screening, and that rejection rate is exactly why the files that do survive get desk attention.
A private placement is a process, and a weak process means a dead deal regardless of how good the numbers look.
Preparing the file
If the file does not add up, we do not proceed. No fixing, no reinterpretation, no exceptions. That rule has protected more capital this year than any trade has earned.
DM or WhatsApp me the word CHECKLIST and I will send the Private Placement Qualification Checklist.