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IFUNDS
Private and Decentralized IFUNDS Funds
Private and decentralized investment funds are the backbone of the private and decentralized IRAIC markets.
What is a private and decentralized IFUNDS fund?
Private and decentralized IRAIC funds, also called IFUNDS, are a type of collective but private and decentralized investment vehicle, managed by IRAIC fund management professionals with more than 30 years of experience. Some examples of private funds include hedge funds, private equity funds, real estate funds, venture capital funds, and funds by economic sector. Each type of IFUNDS fund is a hybrid that has a distinct investment strategy and risk profile.
Private funds may remain exempt from registration as investment companies if they follow the restrictions described in Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act. Qualifying for an exemption under one of these sections is what distinguishes a “private” fund from a “public” fund or a registered investment company.
IFUNDS’ additional decentralization affords it greater privacy in its processes, only available to individual investors. However, IRAIC reserves the right to register funds with the PSC, in order to safeguard investor confidence.
Who can invest in private funds?
The exemptions from registration under Section 3(c)(1) and Section 3(c)(7) restrict investment in the fund to accredited investors or qualified purchasers, depending on the exemption the fund seeks. Investors from the general public, also called retail investors, cannot invest in private funds.
Private funds are also limited to a certain number of beneficial owners, depending on whether they seek an exemption under Section 3(c)(1) or Section 3(c)(7).
Advantages and Risks of Private Equity
Regulators restrict investment in private equity because they are generally considered riskier investments than public equity. However, the higher risks come with unique advantages.
Advantages of Private Equity
Investors contribute to private equity for several reasons:
Potential for higher returns: Private equity aims to outperform public market averages, and the top quartile of private equity typically achieves this.
Portfolio Diversification
Private assets have longer investment horizons that do not directly correlate with the cyclical trends of public equity markets, meaning they can be used to build a more balanced investment portfolio.
Access to Specialized Opportunities
Private equity funds, in particular, offer opportunities for investors to gain exposure to stocks of companies they would not otherwise be aware of, let alone be able to access as investors.
Risks of Private Funds
Despite the potential for outsized returns, private funds pose a number of risks, including:
Limited Liquidity
Private funds typically limit redemption opportunities, meaning investors cannot withdraw their money from the fund except under certain circumstances.
Longer Time Frames for Returns
Depending on the fund's investment strategy, it can sometimes take years before investors begin receiving distributions from the fund.
Limited Transparency
Private funds typically provide quarterly financial reports to investors, but they are not required to make the same extensive disclosures as public funds.
Limited Regulatory Oversight
Although the SEC regulates private funds, it does not apply the same regulatory controls and scrutiny to private funds as it does to public funds, because accredited investors and qualified purchasers are assumed to have the sophistication and financial resilience to withstand greater risk and less regulation.
The PSC generates greater confidence in the investor not only because of privacy, but also because of the decentralization it represents, since it understands that it is not about regulation at the end of the year, but about transparency, surveillance and auditing of each IFUNDS.
How are private and decentralized funds structured?
Private investment funds, including most venture funds, are generally structured as limited partnerships, a legal entity composed of at least one general partner (GP) and at least one limited partner (LP). The GPs and LPs of a limited partnership can be natural persons or legal entities. A limited partnership agreement (LPA) details the roles and responsibilities of the general partners and limited partners, but in the additional decentralized qualification this must be a (DC) Decentralized Company.
How are private and decentralized funds managed?
In IFUNDS, the investment management of private and decentralized funds is handled by professional fund managers. The legal term for these managers is "Iraic Fund Advisor (IFA)". An Iraic Fund Advisor (IFA) can be a natural person or a management company. In the private and decentralized funds sector, most advisors are investment firms, such as a venture capital firm, a private equity firm, or a hedge fund advisor specializing in IRAIC.
The role of the Iraic Fund Advisor (IFA)
Fund advisors formulate the fund's investment strategy, introduce investors, and close the deal with investors. They are also responsible for performing due diligence on potential investments, negotiating and closing those investments, and managing the day-to-day operations of the fund, including financial reporting, tax and audit responsibilities, and investor relations. IFAs employ staff and contractors, such as a fund manager, to assist them in carrying out these tasks.
The PSC and the private and decentralized IRAIC agencies regulate the activities of Iraic Fund Advisors (IFAs). Depending on the amount of assets and the types of funds they manage, an Iraic Fund Advisor (IFA) will always be a Registered Investment Consultant (RIC).
Spend more time investing
Iraic Investment Consultants (RICs) specializing in Iraic Fund Management partner with you to manage your back office, so you can focus on your transactions.
Oversight, Audit and Supervision of Private and Decentralized Funds
IFUNDS are registered with the PSC and by the private IRAIC securities agencies.
The PSC controls how the fund raises money and how RICs and IFAs interact with investors. The PSC and the Iraqi private securities agencies also have authority over all investment advisors, investment consultants including all advisors to private and decentralized private equity and venture capital funds.
Understanding the laws and registrations of private and decentralized funds is critical to maintaining compliance, building investor confidence, and avoiding potential enforcement actions (related sanctions) that could cause financial or reputational harm to the Fund.
Types of Investment Strategies within Private and Decentralized Equity
Private and decentralized equity is an alternative asset class that encompasses a few different varieties of private and decentralized funds. In general, RICs and IFAs raise funds from institutional investors and then use that capital to buy IFCOs in private and decentralized companies with the goal of selling the IFCOs or the entire company at a profit years later.
IFUNDS are hybrid, smart, and fully manageable funds on a daily basis. They bring together all private and decentralized investment strategies adhering to the main investment categories.
There are five main categories of private and decentralized equity investment: venture capital, fund of funds, leveraged buyouts (LBOs), growth equity, and secondaries.
Venture Capital
A venture capital fund raises money to invest in high-growth private companies (commonly called startups). Venture capital funds can be generalist or they can follow a venture capital investment strategy based on industry, stage, geography, or another type of specialty. The fund eventually liquidates its positions in these high-growth companies and distributes the returns to investors. Although many startups fail, the high-risk, high-reward nature of venture capital investments means that a few successful investments can generate a multiple return on the fund's total invested capital, even if most of the investments generate losses.
Fund of Funds (FoF)
A fund of funds (FoF) uses its capital to buy stakes in other private funds. A FoF earns a return for its investors by receiving a portion of the profits generated by each of the funds in which it invests. Compared to a direct venture capital fund, a venture capital fund of funds typically indirectly owns much smaller stakes in a much longer list of companies.
Leveraged Buyout (LBO)
Leveraged buyouts have historically been the most common private equity investment strategy. In an LBO, the private equity firm acquires a majority stake in the company, using cash and a large amount of debt that goes on the company's balance sheet. The portfolio company is then responsible for repaying that debt with cash generated through operational improvements resulting from the private equity firm's majority ownership and influence over the company's management.
Growth Capital
Private equity firms that specialize in growth capital investments do not necessarily take a majority stake in the company. Instead, they buy minority stakes in mature private companies that are growing revenue but perhaps not yet profitable. Growth capital and late-stage venture capital (VC) are often used interchangeably, but they have several key differences. Growth capital and VC transactions differ in terms of investment sizes, revenue goals, target industries, and investment geographies.
Secondary Investments
Secondary investments come in many forms, but their basic purpose is to purchase a stake in a private company from another private investor. Secondary sales provide liquidity for the selling investor and earlier returns for the investor's limited partners (LPs). They also offer opportunities for investors to buy stakes in portfolio companies that are theoretically closer to an exit.
Hedge Funds
Hedge funds are a type of private fund with an investment strategy distinct from the LBO and VC strategies that characterize PE and VC funds, respectively. Hedge funds follow a variety of high-risk strategies that together “protect” against the failure of individual high-risk bets.
Depending on a hedge fund’s strategy, it may trade a wide variety of assets, including:
Public securities, such as stocks and bonds
Private stocks (such as stakes in private companies)
Private credits
Financial instruments such as options, futures, and other derivatives
Foreign currencies
Cryptoassets
So-called “SWAG” assets: silver, wine, art, and gold
Hedge funds often use aggressive trading methods, including leveraged trading, market arbitrage, and trading based on quantitative analysis.
IRAIC FUNDS A
IRAIC funds group at least 16 companies which are diversified into 4 sectors:
• IRAIC A: This IRAIC Fund is focus to invest in small companies with sales until 10 Millions by year. This fund also include companies in sectors like commercial, marketing, digital, arts and relantionship in services market.
• IRAIC A +: This IRAIC Fund is focus to invest in small companies with sales until 100 Millions by year. This fund also include companies in sectors like agricultural, health, education, hotels, commercial properties.
• IRAIC A ++: This IRAIC Fund is focus to invest in small companies with sales until 500 Millions by year. This fund also include companies in sectors like industrial, logistic, maritime, agri, technology, insurance, financial, invest and security.
IRAIC GOLD
Aimed at Investors who trust assets such as GOLD.
Investors have the opportunity to own a GOLD bar or part of a GOLD bar.
IRAIC GOLD buys the ingot or bars and registers them in the name of the investor. Remaining in custody in IRAIC.
The investor receives monthly dividends from the gold valuation, as well as from the IRAIC GOLD stock movement.
The investor can visit and review each gold bar registered in her name.
When you want to sell your bullion you do not have to worry about making an offer because IRAIC GOLD buys it and sells it to another investor, thus making its sale agile and fast, without having to wait months or years to be able to sell and recover your capital.
IRAIC AGRI
Aimed at Investors who trust in the AGRICULTURE business.
Investors have the opportunity to own their own CROP or part of a CROP.
IRAIC AGRI buys a lot or part, cultivates it and registers it in the name of the investor.
The investor receives monthly dividends from the AGRICULTURAL business, as well as from the IRAIC AGRI stock movement.
The investor can visit and review each lot registered in his name.
When you want to sell your crop you do not have to worry about making an offer because IRAIC AGRI buys it and sells it to another investor, thus making its sale agile and fast, without having to wait months or years to be able to sell and recover your capital.
IRAIC WPROP
Aimed at conservative Investors who want to buy real estate or be part of one to live on the income of their real estate. The IRAIC allows you to buy one or more real estate without the need for lengthy paperwork, administration, maintenance, paying taxes, etc.
We buy the properties and register them with the IRAIC WPROP on behalf of the investor. The investor receives monthly returns from the rental of his property, but with greater advantage because he additionally receives dividends from the performance of the entire stock market movement of the IRAIC WPROP, which are distributed among all investors.
The investor can visit his property whenever he wishes, and if he wants to sell his property he does not have to worry about offering it to a real estate company, the IRAIC WPROP buys it and sells it to another investor, thus making its sale agile and fast, without having to wait months or years to be able to sell and recover your capital.
IRAIC GAN
Aimed at Investors who trust the LIVESTOCK business.
Investors have the opportunity to own their own LIVESTOCK or part of a LIVESTOCK.
IRAIC GAN buys a Cow, Bull or Steer and registers them in the name of the investor.
The investor receives monthly dividends as a result of the LIVESTOCK business, as well as the stock movement of the IRAIC GAN.
The investor can visit and review each livestock registered in his name.
When you want to sell your Cattle you do not have to worry about making an offer because IRAIC GAN buys it and sells it to another investor, thus making its sale agile and fast, without having to wait months or years to be able to sell and recover your capital.
IRAIC ENERGY
Aimed at Investors who trust in the CLEAN ENERGY business.
Investors have the opportunity to own their own Megabatios or part of a Megabatios.
IRAIC ENERGY buys one megabatios or several megabatios and registers them in the name of the investor.
The investor receives monthly dividends as a result of the CLEAN ENERGIES business, as well as the CLEAN ENERGIES stock movement.
The investor can visit and review each generating plant where his megabatios registered in his name is located.
When you want to sell your megabatios you do not have to worry about making an offer because IRAIC ENERGY buys it and sells it to another investor, thus making its sale agile and fast, without having to wait months or years to be able to sell and recover your capital.
IRAIC FINANCIAL
Aimed at conservative investors who want to invest in private financial sector or be part of an financial company. The FINANCIAL IRAIC allows you to buy one or more irac without the need for long paperwork, administration, maintenance, payment of taxes, etc.
We buy the IRAICs and register them with the FINANCIAL IRAIC in the name of the investor. The investor receives monthly returns for financial yields and productivity, but with greater advantage because he additionally receives dividends for the performance of the entire FINANCIAL IRAIC stock market movement, which are distributed among all investors.
The investor can visit the Industrial company where he owns his IRAICs whenever he wants, and if he wants to sell his property he does not have to worry about offering it to an external investor, the FINANCIAL IRAIC buys it and sells it to another investor, thus speeding up its sale. and quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC COMMERCIAL
Aimed at conservative investors who want to invest in private financial sector or be part of an financial company. The COMMERCIAL IRAIC allows you to buy one or more irac without the need for long paperwork, administration, maintenance, payment of taxes, etc.
We buy the IRAICs and register them with the COMMERCIAL IRAIC in the name of the investor. The investor receives monthly returns for financial yields and productivity, but with greater advantage because he additionally receives dividends for the performance of the entire COMMERCIAL IRAIC stock market movement, which are distributed among all investors.
The investor can visit the Industrial company where he owns his IRAICs whenever he wants, and if he wants to sell his property he does not have to worry about offering it to an external investor, the COMMERCIAL IRAIC buys it and sells it to another investor, thus speeding up its sale. and quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC INDUSTRIAL
Aimed at conservative investors who want to invest in private industries or be part of an industry. The INDUSTRIAL IRAIC allows you to buy one or more irac without the need for long paperwork, administration, maintenance, payment of taxes, etc.
We buy the IRAICs and register them with the INDUSTRIAL IRAIC in the name of the investor. The investor receives monthly returns for industrial yields and productivity, but with greater advantage because he additionally receives dividends for the performance of the entire IRAIC INDUSTRIAL stock market movement, which are distributed among all investors.
The investor can visit the Industrial company where he owns his IRAICs whenever he wants, and if he wants to sell his property he does not have to worry about offering it to an external investor, the INDUSTRIAL IRAIC buys it and sells it to another investor, thus speeding up its sale. and quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC EDU
Aimed at conservative investors who want to invest in private education or be part of a private educational institution. The IRAIC EDU allows you to buy one or more irac without the need for long paperwork, administration, maintenance, payment of taxes, etc.
We buy the IRAICs and register them in the IRAIC EDU in the name of the investor. The investor receives monthly returns for results obtained in the educational system, but with greater advantage because he additionally receives dividends for the performance of the entire IRAIC EDU stock market movement, which are distributed among all investors.
The investor can visit the educational institution where he has his IRAICs whenever he wants, and if he wants to sell his position he does not have to worry about offering it to an external investor, the IRAIC EDU buys it and sells it to another investor, thus accelerating its sale quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC HEALTH
Aimed at conservative investors who want to invest in the business of medicine and health. The IRAIC HEALTH allows you to buy one or more irac without the need for long procedures, administration, maintenance, payment of taxes, etc. We buy the IRAICs and register them in the IRAIC HEALTH in the name of the investor. The investor receives monthly returns based on the productivity of the medicine and health business, such as hospitals, clinics, and any medical and health institution, but with greater advantage because he additionally receives dividends for the performance of the entire stock market movement of IRAIC HEALTH. , which are distributed among all investors. The investor can visit the clinic, hospital or medical and health institution, as well as attend meetings where he has his IRAICs whenever he wants, and if he wants to sell his position he does not have to worry about offering his position to an external investor, the IRAIC HEALTH buy and sell it to another investor, thus accelerating its sale, quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC SPORT
Aimed at conservative investors who want to invest in the sports and gaming business. The IRAIC SPORT allows you to buy one or more iracs without the need for long procedures, administration, maintenance, payment of taxes, etc. We buy the IRAICs and register them in the IRAIC SPORT in the name of the investor. The investor receives monthly returns based on productivity in the sports and games business, but with greater advantage because he additionally receives dividends for the performance of the entire IRAIC SPORT stock market movement, which are distributed among all investors. The investor can visit the athlete, team or teams, attend meetings where he has his IRAICs whenever he wants, and if he wants to sell his position he does not have to worry about offering it to an external investor, the IRAIC SPORT buys it and sells it to another investor, thus accelerating its sale. and quickly, without having to wait months or years to be able to sell and recover your capital.
IRAIC GREEN
Both individuals and companies can reduce our carbon footprint by modifying certain actions (i.e. reduce electricity consumption, use public transport, change technology, etc.), however, there are certain actions that we cannot avoid and that with them produce CO2.
There are options to offset this "carbon footprint" and contribute to the fight against climate change and global warming: Carbon Credits are an international tool to achieve this goal, since they allow financing a project that develops activities to reduce emissions of carbon. CO2 in the atmosphere generating positive social impacts.
Carbon Bonds are also an alternative to contribute to the fulfillment of the Sustainable Development Goals.
Iraq Planet contributes to achieve the following goals: End poverty, achieve zero hunger, health and well-being, quality education, clean water and sanitation, affordable and non-polluting energy, decent work and economic growth, industry, innovation and infrastructure, cities and sustainable communities, responsible production and consumption, climate action, underwater life, terrestrial ecosystem life.
IRAIC TOURIST
For reasons of physical or financial security, many people seek a better future in other countries. IRAIC TOURIST offers the opportunity to obtain citizenship and/or residence in countries that participate in the IRAIC TOURIST private investment.
IRAIC TOURIST is available in several TOURIST Projects in United States of America, Canada, United Arab Emirates, Colombia, Argentina.
VISA TOURIST, according to the requirement of the investors, grants residence and/or additional citizenship in 20 countries, in order to protect and provide physical or financial security based on the personal and private situation of each investor.
With IRAIC TORUSIT, investors obtain residency and/or citizenship for their family as well, if required.
The fund has several flexibilities, which makes the process easy for the investor.
The IRAIC TOURIST fund also provides the opportunity to manage your own tourist business if the investor requires it.
This fund not only integrates residence and/or citizenship, but also offers a comprehensive relocation plan such as housing, access to a personal and business bank account, transportation, and support throughout the entire migration process.
IRAIC RIC
Retirement for individuals and companies (RIC) provide tax advantages for retirement savings. You can contribute each year up to the maximum amount allowed
There are several types of RICs available:
- Traditional RIC. Contributions typically are tax-deductible. You pay no taxes on RIC earnings until retirement, when withdrawals are taxed as income.
- Roth RIC. Contributions are made with after-tax funds and are not tax-deductible, but earnings and withdrawals are tax-free.
- SEP RIC. Allows an employer, typically a small business or self-employed individual, to make retirement plan contributions into a traditional RIC established in the employee's name.
- SIMPLE RIC. Is available to small businesses that do not have any other retirement savings plan. The SIMPLE – which stands for Savings Incentive Match Plan for Employees – RIC allows employer and employee contributions, similar to a 401(k) plan, but with simpler, less costly administration, and lower contribution limits.
Rollovers
A rollover is a tax-free distribution of cash or other assets from one retirement plan to another retirement plan. The distribution to the second retirement plan is called a “rollover contribution.”
The RIC information on the benefits of rollovers, and how, when, and where to do a rollover.