1. High-Risk Investment Warning

Investing through Finesser involves investments in private markets. These investments are high risk and often illiquid, meaning that capital recovery is uncertain and may take years. The authorities classify such investments as carrying a high potential for loss.

2. Key Risks of Investing

2.1 Risk of Total or Partial Loss

• Investments are structured through Investment Opportunities, which may take the form of limited liability companies or other private entities investing in private equity, private credit, and venture capital assets.
• Private market investments carry inherent risks, including market downturns, poor asset performance, and limited exit options.
• Investors must be prepared for the possibility of losing all invested capital.

2.2 Illiquidity Risk

• Investments in private market assets typically have long holding periods (5-10 years), during which capital is locked.
• Claims acquired through the platform are not publicly tradeable. Investors cannot freely sell or transfer claims unless permitted by the SPV and subject to its internal rules. The SPV may offer to repurchase claims, but liquidity is not guaranteed. If liquidity is available, it may involve a discounted buyback price.

2.3 Uncertain Investment Returns

• Private market investments are long-term commitments and may take years before generating returns.
• Investment outcomes depend on underlying asset appreciation, operational performance, and exit strategies.
• Even if an investment performs well, fees and carried interest can significantly reduce net returns.
• Past performance is not a reliable indicator of future returns.

2.4 No Guaranteed Dividends or Cash Flow

• Unlike publicly traded stocks, private market investments rarely distribute dividends.
• Any potential return is typically realized only upon an exit event, which could take several years.
• Investors should not expect periodic income payments from their investments.

2.5 Secondary Market Considerations

Finesser may support an Investment Buyback process, where the SPV may offer to repurchase outstanding claims from investors. However, this is not a regulated secondary market, and there is no guarantee of repurchase.

• Investors may face transfer restrictions imposed by the Investing opportunity or legal agreements. Investors may face contractual or legal restrictions on transferring their claims to other parties.

2.6 Dilution Risk

• Some private market investments may issue additional units or capital calls, which could dilute investor stakes. However, investors are not subject to capital calls if such may occur to the SPV.
• Investors should review the terms of each offering carefully to understand their position in the distribution waterfall.

2.7 Limited Investor Control

• Investors in Finesser’s Investment Opportunities may not control operative decisions made in the Investment Opportunity´s legal entity.
• The underlying private market investments are managed by external entities or general partners, who make all investment decisions.
• Investors have no influence over the Investment Opportunity´s asset selection, exit timelines, operative measures or distribution policies.
• Investors have all influence over their own investment selection, as to which Investment Opportunities they choose to invest in on the platform.

2.8 No Regulatory Compensation for Losses

• Investments made through Finesser are not protected by:
  • The Deposit Guarantee Fund (FGD).
  • The Investor Compensation Scheme under Directive 97/9/EC.
• If a private market investment underperforms or fails, investors have no regulatory protection to recover lost capital.

2.9 Dispute Resolution & Complaints

• Investors can submit complaints regarding service-related issues, but not investment performance.
• Finesser’s Complaints Policy provides information on dispute resolution mechanisms.
• Investors may escalate complaints to the authorities if necessary.

3. How to Protect Yourself as an Investor

To mitigate risks, investors should:

• Invest only what they can afford to lose.
• Diversify across multiple investments and asset classes.
• Understand the illiquid nature of private market investments.
• Assess the credibility of the investment managers or general partners before investing.
• Review secondary market availability before committing to an investment.
• Seek professional financial advice if unsure about investment suitability.