Frequently asked questions

Private equity generally refers to the equity securities of non-public companies, which are typically bought and sold through privately negotiated transactions. Private equity firms typically manage a fund of committed capital and invest the funds they manage primarily in non-public companies through privately negotiated investments. Private equity firms employ a variety of investment strategies, including, but not limited to, buyout, growth equity, special situations, and venture capital, and invest across industries, company sizes and stages, and geographies with the primary goal of delivering attractive relative returns for their funds' investors (typically referred to as "limited partners").

Private equity funds typically invest in numerous companies over a period of 2 to 4 years, hold their investments for 3 to 7 years, and then exit their positions via a sale or public offering and return the proceeds to their limited partners. Being private enables companies to execute on longer-term strategies and goals without worrying about quarterly earnings.

In simplest terms, equity refers to an ownership stake in a company. Public equity (often referred to as “stocks”) is an ownership interest in a company that is publicly traded on a stock exchange. Private equity refers to an ownership stake in a company that is not publicly traded.

Historically, private equity has generated some of its best-performing vintages during and immediately after market downturns (e.g, 2000-2003, 2008-2009). On the other hand, some of the worst-performing vintages are those that immediately preceded such downturns (e.g., 1997-1999, 2005-2007).

Source: PitchBook Private Market Playbook, Q2 2020.

Modern Markets is a consumer-facing financial technology company operating the Modern Markets Platform - our proprietary direct-to-investor investment platform that enables individual investors to access private equity. By aggregating demand from individual investors, we are able to provide access to premier private equity funds.

Via the Modern Markets Platform, we aggregate investments from you and other investors. Our investment team curates a portfolio of premier private equity funds, and each private equity fund then invests in numerous private companies. Through Modern Markets, you get exposure to premier private equity funds and, through those funds, to high-potential private companies.

All investment products available on the Modern Markets Platform are advised by a subsidiary of Modern Markets Inc. that is an SEC-registered investment advisor with fiduciary obligations. Modern Markets Management's responsibilities include sourcing, researching, evaluating, negotiating the structure of, and performing due diligence on prospective investments.

Due to current government regulations, only accredited investors are able to invest with Modern Markets. We wish we were able to accept investments from all investors, regardless of accredited status, but we don't make the rules. It is our mission to democratize private equity investing, and we hope to eventually be able to accept all investors on our platform.

An accredited investor generally includes those who meet the following criteria:

• Income greater than $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year
• Net worth over $1 million, excluding primary residence (individually or with a spouse or partner)
• Holder of a Series 7, 65, or 82 license with FINRA currently in good standing
• Investing on behalf of a trust, business or entity with at least $5 million in investment assets and/or all of the entity's owners are accredited

For additional information, please see Regulation D Rule 501(a) of the U.S. Securities Act of 1933, as amended.

Yes! Trusts and entities with U.S. tax status are able to invest with Modern Markets.

At this time, Modern Markets is only available to U.S. residents and U.S.-based entities with a U.S. tax ID.

Private equity is a long-term investment, but we know that life can happen. We intend to offer investors the opportunity to receive liquidity on a quarterly basis (subject to restrictions and not guaranteed), rather than waiting through the long lock up periods that historically have been a significant hurdle associated with investing in private equity.

All investment products available on the Modern Markets Platform are registered with the SEC under the 1940 Act and therefore are subject to the restrictions, regulations and oversight associated with an investment company. All investment activity and advisory is performed by a subsidiary of Modern Markets Inc. that is an SEC-registered investment advisor with fiduciary obligations.

At Modern Markets, our mission is to level the investing playing field by democratizing access to historically exclusive, high-performing alternative asset classes like private equity. For decades, large institutions and the top <1% have reaped the rewards of investing in these asset classes, but access has been limited to the ultra-wealthy and industry insiders. Our goal is to enable everyone to play the same game when it comes to investing.