Please feel free to contact us directly at brianross@infrashares.com and include the name of the investment in the subject line.
InfraShares is an online investment platform that uses the internet to pool investors into funds that hold an interest in a pre-identified private infrastructure asset investment. Accredited Investor members have access to information on a variety of investment opportunities and can invest as little as $500 into each such opportunity via a discrete InfraShares Fund. Execution of investor documents and fund transfers are handled securely through our platform as well, in partnership with FundAmerica, allowing you to complete the entire transaction through our website.
Through the InfraShares Investment Platform, accredited investors can access a variety of infrastructure asset classes. Investors can also access both debt investments in the form of Private Activity Bonds or Corporate Bonds secured directly or indirectly by infrastructure asset revenues as well as equity investments in infrastructure assets offering cash flows during the hold period and/or a portion of the profits upon a sale or refinancing of the asset. If there is a specific infrastructure type you are interested in, let us know.
InfraShares allows you to passively invest in professionally managed infrastructure investments for as little as $500, from the convenience of your living room. As an Accredited Investor member, you will have access to pre-screened deals in a variety of asset types and geographies, giving you the ability to partake in opportunities historically only available to large institutions. You will also have access to an investor dashboard where you can securely monitor your investments and cash distributions.
InfraShares allows you to choose and invest in a specific project, whereas a Fund only allows investments into pools of capital that are often limited by asset class or geography. Also, most Funds have much higher minimum investment thresholds than Infrashares, preventing most individual investors from participation. Funds also charge substantially higher fees, oftentimes close to 15% of invested capital. Finally, because most Funds are publicly traded, they have traditionally experienced substantial volatility along with the stock market. However, these are not the only differences between our investments and Infra Funds so please consult your tax or investment advisor for additional information.
InfraShares sets up a separate Limited Liability Company (LLC), for each investment opportunity that is listed on the platform. That LLC in turn will make a loan on an infrastructure asset (in the case of a debt investment) or hold equity in an infrastructure asset (in the case of an equity investment). When you invest through InfraShares, you own shares in that LLC. Using this structure, you will have the benefit of limited financial exposure while also avoiding taxes at the entity level. In addition, this structure makes the investment much more liquid and creates a secondary market for sale of your investment per the specific restrictions of each offering.
Unfortunately, not at the moment. Given the unique tax and legal issues involved, InfraShares is not currently available to non-US investors. However, we are working on changing that so if you are interested and are located outside the U.S., please contact us so we can give you an update.
Yes! You can invest on the InfraShares platform through your LLC, LP or Trust. In that case, we may need some additional information from you including, for example, the articles of organization or trust documents. Also, each owner of the LLC or LP and each beneficiary of the Trust must be an Accredited Investor or such entity must have total assets in excess of $5,000,000. Please contact us to start investing through your LLC, LP or Trust.
Yes! The IRS allows you to invest in non-traditional assets like infrastructure through a Self-Directed IRA. This gives you the ability to invest in infrastructure through InfraShares with the benefit of tax-deferred income just like you would in stocks, bonds or mutual funds. You should carefully consider whether an investment that may trigger unrelated business taxable income is suitable for you. You should also consult your own tax advisor as the tax rules can be complex and we cannot offer tax advice.
If you invest in a debt investment opportunity, the fund you invest in will be secured by a revenue generating infrastructure asset Special Purpose Vehicle (SPV) and will receive monthly interest payments. A share of those payments will be deposited directly into a bank account of your choice in accordance with the terms of the operating agreement for the fund. If you invest in an equity investment opportunity, the fund you invest in will receive periodic payments of cash flow from user fees/availability payments and/or a share of the proceeds when the asset is sold or refinanced. As with debt investments, a share of those payments will be deposited directly into a bank account of your choice in accordance with the terms of the operating agreement for the fund. Please review the operating agreement for the specific investment opportunity you are considering for further details.
InfraShares screens all investment opportunities prior to listing them on our online platform. This screening process usually includes background and credit checks on the company offering the investment as well as a review of financials, projected returns, title and inspection reports, and comparable sales. Once an investment is listed, you will have access to detailed investment information including financials, asset information, legal and financial documents and investment manager bios in order to allow you to make an informed investment decision. Each investment has a target funding amount and Investors who opt in for a specific investment will have their desired investment commitment held until the funding amount has been met. If the target funding amount is not met, 100% of your investment commitment will be returned to you. Our platform also allows you to review and execute all applicable legal and investor documents online prior to transferring funds to escrow. Please note that InfraShares does not have discretion on how your funds are deployed once you opt in for a specific investment. Please also note that InfraShares does not guarantee the performance of any investment listed on www.infrashares.com.
There is currently a minimum investment of $100 per investment, although this may vary for future transactions on our site. The maximum amount of investment depends on the offering and whether or not you are an accredited investor. See the specific project offering statements for more details.
If the target funding amount is not met, 100% of funds transferred by you to us will be returned to you. Please note that in certain cases, the target funding amount may be increased in order to meet investor demand for a specific investment opportunity.
Joining InfraShares and browsing the marketplace is free. If you choose to invest in a specific offering, InfraShares will charge a fee to cover ongoing investor reporting and communications for the investment. Please review the operating agreemeent for details on the fees associated with a specific investment. Typically, the fee is in the form of "carried interest", or a small percentage of the investment returns. We do not charge a transaction fee, so we only make money if you make money.
InfraShares investors will receive quarterly updates and reporting for each investment via email and directly to their online investor dashboard. You will also receive tax documents in each calendar year in which you have a distribution from a real estate investment through InfraShares. We will try our best to get you all required tax documents for your investments no later than March 15th.
Infrastructure investments of the type you find on InfraShares are not traded on a public market and as a result, your shares in these investments cannot be easily traded or sold. Each investment has a unique projected "hold period". The hold period is the expected time investors will be involved with the investment until it is re-sold or the loan is paid off. Please note that the "hold period" is an estimate and may differ from the actual hold period for the investment. This expected hold period will be made available to investors through the Investment Overview Page for a specific investment and currently ranges from less than 6 months to greater than 5 years. For more details regarding the hold period, please review the Operating Agreement and Subscription Agreement associated with the specific investment.
In order to protect your personal information, we use 128-bit encryption whenever you visit our website. This is the same level of encryption used by top national banks. For added protection, we never store your banking information on our servers and we automatically log you out of your account after 15 minutes of inactivity.
All funds transferred through the InfraShares website or by wire transfer (if you are investing through an IRA) are deposited into an Escrow Account with FundAmerica (www.fundamerica.com). Funds are kept in this account until the target funding amount is reached. Once the target funding amount is reached, funds are transferred for the sole purpose of the specific loan or specific property you are investing in. If the target funding amount is not met, 100% of your funds are returned directly to you.
Before placing any investment opportunity on our platform, the InfraShares team reviews aspects of the proposed transaction, such as: financials, geography, asset type and quality, and investment structure. In order to decrease fraud, we also perform background and credit checks on the companies managing the project. While each investment includes risk and InfraShares cannot guarantee results, our vetting process seeks to ensure that only quality projects are listed on the platform. Once an investment opportunity is listed on the platform, investors have full discretion as to whether to personally invest in the opportunity, and if so, how much.
All investment offerings made available through InfraShares are conducted under Regulation D, Rule 506(c), Regulation A+, or certain intrastate crowdfunding laws. 505(c) offerings are limited to accredited investors (foreign and domestic), but there in no limit on the amount a company can raise. Regulation A+ offerings allow companies to raise up to $50 million/year and are open to both accredited and unaccredited investors, but are limited to investors within the state of the project. Intrastate crowdfunding laws vary by state but offerings are typically limited to residents of the state and are subject to investment limits depending on income or net worth.
A Public-Private Partnership (P3) is a business relationship between a private-sector company and a government agency for the purpose of completing a project that will serve the public. Public-private partnerships can be used to finance, build and operate projects such as public transportation networks, parks and convention centers. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place. Expanding the private sector role allows public agencies to tap private sector technical, management and financial resources in new ways to achieve public agency objectives. These objectives include greater cost and schedule certainty, supplementing in-house staff, innovative technology applications, access to specialized expertise, or access to private capital. The private partner can expand its business opportunities in return for assuming the new or expanded responsibilities and risks. Some of the primary reasons for public agencies to enter into public-private partnerships include: • Accelerating the implementation of high priority projects by packaging and procuring services in new ways • Turning to the private sector to provide specialized management capacity for large and complex projects • Transferring risk to the private sector • Encouraging the use of new technologies and innovations developed by private entities • Drawing on private sector expertise in accessing and organizing the widest range of private sector financial resources • Providing access to private equity and commercial financing that would not otherwise be available to public sector project sponsors • Encouraging private entrepreneurial development, and operation of highways and/or related assets Source: http://www.ncppp.org/ppp-basics/frequently-asked-questions/