Investing in unlisted companies means buying shares in companies that are not publicly listed. These can be start-ups, family businesses or companies that are planning to grow and may be listed on the stock exchange in the future. As the shares are not traded on an open market, the deals are usually done directly between buyer and seller or with the help of a stockbroker.
Why invest in unlisted companies?
A major advantage of unlisted investments is the opportunity to get in early on companies with high growth potential. The value can increase rapidly if the company succeeds in growing or is acquired. At the same time, there are risks, for example if the company fails with its business idea, and it is often more difficult to sell the shares than in listed companies. It is important to have a long-term strategy and patience.
What you should consider before investing
It is important to research the company thoroughly. Find out how the business model works, who runs the company and what the market is like. Because information on unlisted companies is often more limited, extra careful analysis is required. Monitor Capital Markets can help with analysis and guidance, giving you a clearer picture of risks and opportunities.
How is an investment made?
Purchase and sale of unlisted shares is usually done through private networks or with the help of a broker. As shares are not traded openly on the stock exchange, it is important to have clear agreements and documentation, so that the process is safe and correct. It is also common for an investment to have a longer time horizon, as the company needs time to grow before a sale or dividend can be considered.
Monitor Capital Markets works to structure transactions and match investors with the right companies, making the deal smoother and more professional.
Unlisted companies as long-term investments
Investing in unlisted companies can offer high returns, but also involves higher risk and a longer time horizon. With the right preparation and support from us at Monitor Capital Markets, the chances of your investment being both safer and more profitable increase. Read more here about us and our services.
A selection of companies where we’ve facilitated transactions →
We broker deals in both innovative startups and established corporations. So far, we've completed transactions in more than 130 companies – and we actively track and have insight into over 1,000 companies. Our broad investor network means new opportunities are always on our radar.