THE SECURITIES OFFERED HEREBY ARE HIGHLY SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK, AND SHOULD NOT BE PURCHASED BY ANYONE WHO CANNOT AFFORD THE LOSS OF HIS OR HER ENTIRE INVESTMENT. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITY AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
A .Introduction The following investment policies govern the objectives, strategies, implementation, and performance measurement of the Private Equity Program. Investors
B. Investment Objective The investment objective of the Private Equity Program is to provide performance enhancement and diversification benefits to the overall investment portfolio. The performance objective of the Private Equity Program is to equal or exceed the Stock Market Indices plus 207 basis points annualized and net of fees over ten-year rolling periods. Performance inside of ten years will be compared to time horizon, risk-tolerance, the Cambridge Associates U.S. Private Equity Benchmarks and MarketWatch
C. Investment Guidelines The investment policies and guidelines for the Private Equity Program follow below. 1.Private Equity Investments: Investment is authorized in vehicles that invest in a broad array of various non-publicly traded securities, including but not limited to:
•Buyout investments include investments in acquisitions, recovery investments, subordinated debt, and special situations (a category which represents a diversified strategy across many sub-categories). Investments are made across the market capitalization spectrum and typically involve the purchase of a control position (primarily majority positions, with some minority positions) in an established company and may include the use of leverage. Investments are typically made in years one through six and returns typically occur in years three through ten. Investments may be made in companies that are either U.S. or non-U.S. domiciled.
•Venture Capital/Growth Equity investments include investments in companies in a range of stages of development from startup/seed-stage, early stage, and later/expansion stage and growth equity. Investments are typically made in years one through six and returns typically occur in years four through ten. Investments may be made in companies that are either U.S. or non-U.S. domiciled.
•Opportunistic investments include investments in distressed debt (the debt instruments of companies which may be publicly traded or privately held that are financially distressed and are either in bankruptcy or likely candidates for bankruptcy), mezzanine, secondaries, and other private investment strategies that are opportunistic in nature and do not follow a buyout or venture capital/growth equity strategy. Typical holdings are senior and subordinated debt instruments and bank loans. Equity exposure is acceptable as debt positions are often converted to equity during the bankruptcy reorganization process. Investments are typically made in years one through five and returns typically occur in years three through ten. Investments may be made in companies that are either U.S. or non-U.S. domiciled.
•Real Estate Investing Buy /sell real estate according to your investment strategy Residential or commercial Rent and profit from sales can grow your IRA Use debt leverage or partnership tools Purchase Tax Lien Certificates: Tax lien states are Alabama, Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Vermont, West Virginia, and Wyoming. The District of Columbia is also a tax lien jurisdiction.
•Insurance contracts, Fixed Index Annuities, Index Universal Life, Whole Life, Life Settlements etc.
•Notes: Asset Backed Securities “ABS” Mortgage Backed Securities “MBS” Business Equity, Corporate Bond Investing, Investors considering fixed-income securities might want to research corporate bonds, which some have described as the last safe investment. As the yields of many fixed-income securities declined after the financial crisis, the interest rates paid by corporate bonds made them more appealing. Corporate bonds have their own unique advantages and disadvantages.
•Crowd Funding, Crowdfunding is an evolving method of raising capital that has been used to raise funds through the Internet for a variety of projects. Title III of the JOBS Act created a federal exemption under the securities laws so that this type of funding method can be used to offer and sell securities. Under the Crowdfunding portal rules would enable individuals to purchase securities in crowdfunding offerings subject to certain limits, require companies to disclose certain information about their business and securities offering, and create a regulatory framework for the intermediaries facilitating crowdfunding transactions. Permit a company to raise a maximum aggregate amount of $1 million through crowdfunding offerings in a 12-month period.
•Auto Equity Loans: An auto equity loan is similar to a home equity loan, but you use the value of your vehicle instead of your home to get a loan, then pay it back with interest. Like all secured loans, auto equity loans carry risk
•Solar Renewable Energy “Clean Energy” The U.S Solar Industry is a 50 State Market While California has traditionally dominated the U.S. solar market – with 35% market share in 2016 – other markets are continuing to expand, including Minnesota, Utah, Florida and Texas. As the price of solar continues to fall, new markets will grab an increasingly large share of the market. In 2016, Solar installed 39% of all new electric generating capacity, topping all other technologies for the first time. Solar’s increasing competitiveness against other technologies has allowed it to quickly increase its share of total U.S. electrical generation- from just 0.1% in 2010 to 1.4% today. By 2020 solar should surpass 3% of total generation is expected to hit 5% by 2022.
Private Equity Program Investment Targets: For the Private Equity Program, the targeted and range of investment exposures to the various private equity investment categories are shown in the following table: The projections or other information generated by MKG Enterprises Corp and its subsidiaries regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. The guidance is educational in nature, is not fully individualized, and is not intended to serve as the primary or sole basis for your investment or private placement offering decisions. The return assumptions are not reflective of any specific product, and do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used. It is not possible to directly invest in a fund.