It takes seasoned professionals to recognize solid investment opportunities, and Rocket Dollar’s latest partnership provides a wealth of opportunities to gain portfolio diversification for our Self-Directed IRA and Solo 401(k) account holders.
Rocket Dollar partnership with online investment platform Regiment provides tax-deferred investors increased access to deal flow in FinTech, EdTech, commercial real estate, and many other growing asset classes. Regiment is led by Co-Founder and Managing Partner Mike Cavanaugh, who spent more than two decades working in the capital markets, trading and alternative investment spaces.
Regiment Grew From Capital Raise Consulting Practice
A few years ago Cavanaugh founded a boutique financial technology consulting firm with a focus on executive coaching, customer acquisition and raising capital. Cavanaugh’s wealth of expertise with new FinTech ventures helped fledgling businesses create sales plans and processes so they can scale without making costly missteps.
“FinTech is costly if you do it wrong – the regulatory aspects of FinTech are very onerous,” Cavanaugh says. “There can be no mistakes.”
Invariably, though, every consulting project included a capital raise, which led to the creation of Regiment. The online private placement marketplace launched in March of 2019 and offers highly vetted alternative investment opportunities for accredited investors.
Regiment is currently navigating through the process of registering with a licensed broker-dealer to become a FINRA-regulated alternative investment platform. Regiment expects to be fully operational and offering a range of alternative investment opportunities in the first quarter of 2020.
Initial opportunities will focus on FinTech, although there will be some deals in commercial real estate and financial services as well. Investment opportunities in other asset classes are expected to come with time and traction.
The Careful Vetting Process for Deals
Regiment provides comprehensive data and insight on every company listed on its platform. Cavanaugh and other industry veterans work closely with company founders to ensure they provide a comprehensive suite of details on prospective offerings to investors.
“We have to be subject-matter experts on the deals we offer so we can present the best aspects of these opportunities,” Cavanaugh says. “This is really about people investing in other people; that’s what Regiment’s culture is built around.
“As a registered broker-dealer, there are standards you have to follow and processes that first have to be submitted to FINRA for approval,” he adds. “It is a heavily regulated industry with many due diligence checklists that have to be completed before you can even show investors the merits of a deal.”
Due diligence ranges from in-person meetings with business owners to reviewing financials and completing audits – Regiment’s due diligence checklist covers nearly 29 pages and addresses a range of key financial and business metrics.
“It takes time, and it takes seasoned analysts to review each project,” Cavanaugh says. “Due diligence is the toughest part of qualifying the deals listed on the Regiment platform.”
Tax-Deferred Diversification Through Alternative Investments
Regiment offers yet another avenue for Rocket Dollar investors to use tax-deferred income to diversify their investment portfolios and potentially gain greater returns through high-growth FinTech and related companies.
“Rocket Dollar investors gain increased deal flow from licensed FINRA broker-dealers that have done all the heavy lifting of the due diligence for their potential investors,” Cavanaugh says. “We provide investors with access to a wider range of deals so they can potentially find opportunities that match their investment strategies.”