What are Private Placements?

Private Placements are non-public sales of shares or other securities without a prospectus to a closed group of investors. The companies which are selling shares in a form of a private placement may listed or unlisted companies. In most cases, these companies offer the shares at attractive discounts to the market price to incentivize potential investors to participate in the private placement.

Private placements enable companies to raise fresh capital to finance their current and future projects. If these funds are used the right way, it can lead to strong growth and therefore to a significantly increase of the share price and  the company’s valuation.

Another advantage  of private placements is the issuance of additional free warrants (= subscription rights to purchase additional shares at a certain price within a fixed period) on top of the subscribed shares. This attractive package offers subscribers to private placements the opportunity to make additional profits.

Why are private placements exclusive?

Private Placements are very exclusive and difficult to get into, it could be challenging to find good deals in the market especially when you live in different regions. For example, if you live in Germany or France and want to invest in a Canadian or Australian natural resource (gold/silver/copper) exploration/mining company, the only way would be to buy shares of this company from your local exchange but only if this stock is listed in your local exchange. This reduces your competitive advantage compared to people who participate in private placements, as they get discounted price for the same shares and on top a warrant.

Private Placements are only offered to a selected group of private-professional investors and institutions such as banks, insurance companies etc., sometimes called as eligible counter parties or professional investors

Be an Early Investor in our exclusive Private Placements

But how can ‘You’ invest in private placements?

To be able to join this group of exclusive investors, you must have the knowledge and experience of investing in securities and other financial instruments. You should be aware of the risks associated with private placements and also, must be aware of a potential lockup periods for these securities.

For us at CM-Equity, professional clients in the meaning of the Securities Trading Act (WpHG) are clients for whom CM-Equity AG can assume that they have sufficient experience, knowledge, and expertise to make their investment decisions independently and to be able to assess the associated risks appropriately (Section 67 (2) WpHG).

Private Individuals:

Private Individuals are classified as Professional Clients if they meet at least two of the following three criteria:

  • The client has carried out an average of at least ten transactions of significant size per quarter during the last year on the market on which the financial instruments are traded for which he is to be classified as a Professional Client.
  • The client owns cash deposits and financial instruments worth more than EUR 500,000.00. Real estate assets are not taken into account.
  • The client has been employed for at least one year in a professional position in the financial sector, which requires knowledge of the proposed business or services.


Companies that exceed at least two of the following three criteria are also classified as Professional Clients:

  • Balance sheet total >= EUR 20 Mio.
  • Revenues of >= EUR 40 Mio.
  • Own funds of >= EUR 2 Mio.

Be an Early Investor in our exclusive Private Placements


About CM-Equity:

CM-Equity is a 19 year old, according to §15 WpIG regulated financial institution from Munich.

CM-Equity was early involved as a pioneer in the field of digital asset management. With a fully licensed, interfaced capital market infrastructure platform for digital assets for companies, FinTechs and investors, CM-Equity has advanced to become one of the most popular players in the market for digital assets in Germany and Europe. The company wants to make the new digital capital markets 4.0 accessible to everyone and offers innovative and regulatory-compliant access to the most liquid trading venues while at the same time offering the most secure storage.

Contact CM-Equity


Michael Kott, kott@cm-equity.de, +49 (0) 89 189047470

Press contacts: info@cm-equity.de