How to Create Awareness: Social Networks Marry Uber-Rich With Investment Opportunities

Courtesy of Liz Moyer, WSJ (excerpt) :

“..A new breed of social investment networking is popping up, with the aim of helping wealthy suitors and private-business owners meet up and pair off. Call them matchmakers for the deal market. What the networks do best is give buyers and sellers the rough equivalent of a well-lit meeting place for a first encounter. The networks are generally open to “accredited” investors, typically those with an annual income of at least $200,000 or $1 million in investible assets..”

Firms such as Axial.net, Zanbato and FDX Capital are catering to deep-pocketed investors looking to buy majority stakes in closely held firms by introducing investors to business owners seeking that kind of long-term investment commitment. Zanbato and FDX opened their doors in the past year or so, while Axial was formed in 2010.

Zanbato’s network, Zanbato Sutter, launched in the spring. It connects about 800 wealthy families, as well public pensions and sovereign-wealth funds, with potential deals in real estate, media and other sectors. The firm, in Mountain View, Calif., charges investors a fee based on the size of a completed deal, says Nico Sand, its chief executive.

Here’s the link to the WSJ story

How to Create Awareness: Social Networks Marry Uber-Rich With Investment Opportunities