WealthTerra Capital Management Inc. (“WealthTerra”) is a boutique securities dealer specializing in the Private Capital Markets and Alternative Investments sector. WealthTerra offers opportunities to invest in equity or debt securities of private issuers and other investments which are not sold in the Public Capital Markets, that is the stock markets.
The Private Capital Markets are also referred to as the exempt market. This is due to the fact that the securities sold in this market are exempt from the requirement to file a prospectus with securities regulators. However, WealthTerra, like all registered dealers is regulated by the securities regulators and must ensure that investments are suitable for investors based on their investment objectives, risk tolerance, investment knowledge, investment time horizon, and financial and personal circumstances. Under securities legislation WealthTerra must treat all its clients honestly, fairly, and in good faith.
There are risks associated with investments in the Private Capital Markets. These securities may not be listed on any stock exchange which could restrict your ability to resell them. There could be a lockup period that applies to the security which restricts you from selling the security. The higher risk especially in relation to liquidity can lead to higher returns than investments in the public markets, although there is no guarantee and all investments can fail.
The Private Capital Markets have come out of the shadows and into the spot light over the last few years. Many pension funds, endowment funds, and wealthy families have started allocating significant portions of their investment portfolios to private and alternative investments in search of higher returns. These investors still maintain an allocation in the public markets for easy access of cash.