Frequently Asked Questions

Venture capital (VC) is a form of private equity financing provided to early-stage and growth-stage companies. Investors typically provide capital in exchange for an ownership interest and accept substantial risk in pursuit of long-term growth.

Venture capital generally focuses on earlier-stage companies with significant growth potential, while private equity often invests in more established businesses. Venture capital investments typically involve minority ownership positions, whereas private equity transactions may include controlling or substantial ownership stakes. The structure, investment horizon, and level of involvement vary by strategy and transaction.

Private equity funds generally make longer-term, illiquid investments in privately held companies and may work with management to support strategic or operational initiatives. Hedge funds may invest across public securities, derivatives, commodities, currencies, and other instruments using a wide range of trading and investment strategies. Liquidity, leverage, risk, fees, and investment horizons vary significantly among funds.

A fintech company uses technology to provide, improve, or support financial products and services. Fintech businesses operate across areas such as payments, banking, lending, insurance, investing, financial infrastructure, and regulatory technology.

A unicorn company, or unicorn startup, is a private company with a valuation over $1 billion. This term was first coined by Aieleen Lee in 2013, after the mythical animal to represent the statistical rarity of such successful ventures.

Alternative investments are investments outside traditional publicly traded stocks, bonds, and cash. They may include private equity, venture capital, private credit, real estate, infrastructure, commodities, hedge funds, and other specialized strategies. These investments can provide differentiated sources of return and portfolio exposure, but they may also involve greater complexity, higher fees, limited liquidity, and substantial risk.

Private market investments are generally not traded on public exchanges and may have limited opportunities for early liquidity. They often involve longer holding periods, less frequent valuations, fewer public disclosures, and a different regulatory and oversight framework than publicly traded investments. As a result, investors may have access to less standardized information and may place greater reliance on the investment manager’s sourcing, due diligence, and underwriting process. Publicly traded investments typically offer more frequent pricing, liquidity, and disclosure requirements, although both public and private investments involve risk. Unlike public stocks, you cannot login into an account and sell private equity, venture capital, or hedge fund investments at the click of a button as they often require lockups, extended holding periods and in some cases, a prohibition on selling without manager approval.  If you absolutely must sell an illiquid asset, you may have to accept a price well below actual value and an exit penalty may be applicable.

A co-investment is an investment made directly into a specific company or transaction alongside a lead investment manager, sponsor, or fund. Co-investments can provide targeted exposure to an individual opportunity, but they may also involve greater concentration and transaction-specific risk than a diversified fund.

A special-purpose vehicle, or SPV, is a legal entity formed for a specific investment or defined opportunity. In private markets, an SPV may serve as a pooled investment vehicle that aggregates capital and commitments from multiple investors to invest in a particular company, fund, or other opportunity. By combining investor capital, an SPV may provide access to investments that could otherwise require larger minimum commitments than an individual investor is prepared or eligible to make. The SPV’s fees, expenses, governance, liquidity, and investor rights are described in the applicable offering documents.

Private markets, including private equity and venture capital, may provide access to companies and investment opportunities that are not available in the public markets, as well as the potential for long-term capital appreciation and portfolio diversification. However, these investments are generally illiquid, may involve long holding periods and limited public information, involve risk of loss, including the entirety of your investment, and can carry significant investment, valuation, execution, and manager-selection risks. They may not be appropriate for every investor.

A qualified client is an individual or entity that satisfies one or more financial, professional, or institutional criteria established under federal securities laws. Qualified client status may determine eligibility to participate in certain private investment offerings. Qualification requirements vary by investor type and should be confirmed before investing. Click here to review the accredited investor criteria.

A qualified purchaser is an individual or entity that meets certain investment-ownership requirements under the Investment Company Act of 1940. This standard is higher than the qualified client standard and may apply to certain private funds. Eligibility is determined based on the applicable legal requirements and offering documents. Click here to review the qualified purchaser criteria.

Private market investments are generally long-term and illiquid. Holding periods vary based on the investment strategy, company development, transaction structure, market conditions, and timing of a potential liquidity event. Investors should be prepared to hold an investment for an extended and potentially uncertain period. Alternative investments should not be made with assets that may be needed for near- or medium-term expenses, liquidity needs, or other foreseeable obligations.

Before investing, investors should carefully review the applicable private placement memorandum, subscription documents, governing agreements, financial information, fee and expense disclosures, conflicts of interest, transfer restrictions, tax considerations, and risk factors. Private market investments may involve substantial risks, including illiquidity, valuation uncertainty, concentration, long holding periods, and the possible loss of principal. Investors should consult their own legal, tax, and financial advisers before making an investment decision.

Eligible investors may request access through the GAIM website or contact the team directly here. Information about specific opportunities is provided only to investors who satisfy the applicable eligibility requirements.

GAIM may offer access to select private market opportunities through individual investments, diversified funds, and other investment structures. Available opportunities vary over time and may include late-stage venture capital, private equity, secondary transactions, co-investments, and other alternative investment strategies.

Eligibility varies by investment opportunity and applicable securities laws. Offerings are limited to accredited investors who also meet qualified client and/or qualified purchaser criteria. Additional financial, legal, suitability, or minimum-investment requirements may also apply. The applicable offering documents describe the eligibility requirements for each opportunity.

GAIM applies a disciplined underwriting process that may include evaluating the company, market opportunity, management team, financial performance, competitive positioning, valuation, transaction structure, and key investment risks. The scope of diligence varies by opportunity, and no review or underwriting process can eliminate investment risk or assure a successful outcome.

GAIM’s standard fee structure is 2/1/10, generally consisting of a 2% annual management fee on capital commitments during the first year, a 1% annual management fee thereafter, and 10% carried interest. Management fees and carried interest varies by investor class and fund. Class-specific terms, expenses, risks of investing, and other provisions are described in the applicable offering and governing documents.

This information is provided for general informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any investment. The Offering Documents contain important information regarding the applicable investment’s objectives, terms, fees, expenses, conflicts of interest, risk factors, investor eligibility requirements, transfer restrictions, and other material considerations. In the event of any inconsistency between information presented on this website and the applicable Offering Documents, the Offering Documents will control.

GAIM may work with registered investment advisers, broker-dealers, family offices, wealth managers, consultants, and other investment professionals evaluating private market opportunities for eligible clients. The nature of each relationship depends on the applicable offering and regulatory requirements.

If you are interested, contact our team here.

GAIM may work with institutional investors seeking access to private market opportunities or customized investment structures. Potential relationships depend on investment objectives, capital commitments, eligibility, and the availability of suitable opportunities.

If you are interested, contact our team here.