Risk Warning: Investing in privately held companies involves risks, including total loss of investment, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. The Leva platform (“Platform”) targets exclusively sophisticated investors who understand these risks and make their own investment decisions. The list of risks below is not exhaustive, but aims to cover the key risks for an investor investing into private equity.
Loss of Capital
There is a high risk that investors will lose part or all of the investment. Especially investments in seed and early-stage private equity have a higher risk than traditional asset sectors and some investments may fail, which may result in a total loss of some or all of investors' capital. You should not invest more money through the Platform than you can afford to lose without altering your standard of living. If a business you invest in fails, neither the company nor Leva Capital Partners AG (“Leva”) is obliged to pay you back your investment. We therefore advise you to contact an independent financial advisor before investing in private equity deals.
Lack of Liquidity
Any investment you make in private equity and investments through the Leva Platform will be most likely highly illiquid. Investments will not be listed on a recognized stock exchange or a secondary market. Investments in such shares are not expected to develop. You are unlikely to be able to sell your shares unless the company you invested in goes public in an initial public offering ("IPO"), is bought by another company, or is listed in a secondary private market transaction. Even for a successful business, such an IPO, purchase or listing is unlikely to occur for a number of years from the time you make your investment. Consequently, it may be difficult for an investor to sell shares and investors may receive less than the amount invested.
Rarity of Dividends
Early stage and growth companies pay dividends extremely rarely. Profits are typically re-invested into the business to fuel growth and build shareholder value. This indicates that if you invest in private equity via the Leva Platform, you are unlikely to see any return of capital or profit until the underlying is being sold.
Dilution
Any investment you make through the Leva Platform may be subject to dilution. Dilution may occur when a company raises additional capital by issuing new shares and the existing shareholders do not purchase any of the newly issued shares. These new shares may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your disadvantage. Your investment may also be subject to dilution due to the granting of options (or similar rights to acquire shares) to employees, service providers or other third parties connected with the company.
Diversification
Investing in private equity should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple businesses rather than a lot in one or two businesses. It also means that you should invest only a small proportion of your investable capital in private equity as an asset class with the majority of your investable capital invested in safer, more liquid assets.
Past Performance
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
Forecasts
Forecasts are not a reliable indicator of future performance.
Legal Disclaimer
The information provided on www.leva.pe (“Website) and/or the Platform is for informational purposes only and does not constitute financial, investment, legal, or tax advice. It should not be considered an offer, solicitation, or recommendation to buy or sell any financial instruments, securities, or investment products, nor an endorsement of any investment strategy. Users should seek independent professional advice before making any financial decisions.
Access to this Website or the Platform may be restricted in certain jurisdictions, and users are responsible for ensuring compliance with applicable laws. To the fullest extent permitted by law, we disclaim all liability for any direct or indirect losses resulting from its use.