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The Rise of Fractionalized Ownership in the Reg A+ World – The Dalmore Group

·3-min read

Business has been booming for The Dalmore Group’s private and public Reg A+ business. Several clients have already raised their full goal amounts, and some are now publicly traded and listed in the US and Canada. An exciting component of that growth has been significant growth in the area of fractional ownership – with issuers bringing unique and sought-after opportunities to their investor base, offering them an opportunity to own a portion of prized assets. The scope of this opportunity is only limited by the creativity of the offerors.

What is a Regulation A+ Series Issuer?

A Reg A+ Series Issuer does not sell shares of its business. Rather, the offeror has been qualified to raise up to $75m/year to syndicate things like real estate deals, rare collectables, sports memorabilia, sneakers, magazines, art, wine, watches, race horses, vintage cars, films and even dinosaur bones. The issuers launch apps with cutting edge user experience, and help create communities of investors who are able to build their own portfolios of things they’ve always dreamed about - but could not imagine owning. But now they can – or at least they can own of piece of the asset. Thus, an investor who doesn’t have $100,000 to buy a Michael Jordan rookie, but who does have $10, can buy a share of the rookie card in a simple credit card transaction. That’s the world of fractionalized ownership in assets that has been unlocked by Reg A+ investing. So now, average investors get to get a piece of a prize that previously was only available to the super rich.

Who are the Players?

Dalmore has shepherded several big name Reg A+ Series "fractionalized ownership" issuers to market – including Rally Road, Collectable, Otis Wealth, MyRacehorse, Arrived Homes, Mythic Markets, Ark7, and many others. And, along with that opportunity, Dalmore has also helped Series Issuers build secondary trading solutions for their investors. That means that fractional investors in a Reg A+ deal who want to trade their asset, now also have a secondary market in which they can do so. One of the benefits of Reg A+ securities is that there is no minimum holding period of the shares, meaning you are free to sell your shares once the primary offering is complete (unlike Reg D which has a 1 year lock up). This path to liquidity, in bite size share increments, has led to an explosion of shareholders and a rapidly expanding secondary marketplace for these private securities.

Dalmore’s Reg A+ Series Issuer Service

Having onboarded over 100 Reg A+ clients over the past two years, Dalmore has become the go to BD for Reg A+ issuers looking for experience, insight and added value. Dalmore has seen what works well (and not so well) and shares that knowledge and experience with its clients.

Dalmore’s Reg A+ services include:

  • 50 states registered broker-dealer with a top track-record of primary issuance service

  • Full-service investment banking since 2005

  • Deep institutional, private equity, venture capital and family office relationships

  • Marketing guidance and experienced securities regulation compliance review

  • Deep relationships with securities and regulatory counsel to help prepare and coordinate necessary filings

  • Media and publisher knowledge and experience

  • Reg A+ broker-dealer marketplace platform distribution partners

  • Marketing and PR company guidance

  • Special volume discounted pricing at funding portals and other service providers

  • Comprehensive data security and compliance procedures

  • Ability to integrate with any third-party platform in the management and processing of investor activity

  • Ability to integrate with any escrow or paying agent

  • Comprehensive KYC/AML services

  • Fully streamlined on-boarding, diligence, and advertising material review process

  • Secondary trading solutions through our Alternative Trading System partnerships

Dalmore offers flexible fee arrangements for Reg A+ activity, ranging from national plans to more focused regional or state specific activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210414005614/en/

Contacts

Etan Butler, Chairman
Dalmore Group, LLC
etan@dalmorefg.com
917.319.3000