Indy 500 Winner Alex Rossi First Banked via Private Placement
Alex Rossi, the youngest race driver to ever win the Indy 500 (and the only American to win this auto race since 2006) knows that in the world of professional car racing, whether Formula One (F1) or NASCAR, it takes more than a village to underwrite the projected costs of turbocharging an all cylinders effort. Aspiring race car drivers can burn through not just gas as they attempt to cross the finish line first, but along the way, hundreds of thousands, and often, millions of dollars before mainstream sponsors will take notice of their rising stardom, and in turn subsidize racing team operating costs before winnings on the track can profitably cover all of the operating expenses.
The back story behind the fast-paced career of Indy 500 2016 winner Alexander Rossi, who nearly ran out of petrol in the last few laps before he was handed the Borg-Warner Tropy is a case in point. Whilst the now 24-year old was just starting to prove his auto racing skills at the age of 12, his dad, Pieter took an innovative and entrepreneurial approach towards building a racing team war chest; they floated a private placement offering and secured nearly $2.5mil from qualified investors who recognized the financial prospects of ‘owning a piece of a celebrity race car driver.’
Every private placement offering needs to conform and comply with state and federal regulations, and while Title III of the JOBS Act, along with SEC Regulation Crowdfunding (aka Regulation CF) makes it somewhat easier to advertise and promote relatively small private placements to mainstream investors ($1mil or less) vs. institutional-size offerings (typically $10mil or more) directed to Qualified Institutional Buyers aka “QIBs”, the Rossi Offering, whose documentation was prepared by PPM, is a case study in the need to engage experts who can address bespoke terms and conditions for equity, debt or convertible structures.
PPM and its professional staff, each of whom has spent “more than 15 minutes” working under the auspices of the world’s leading investment banks, have been preparing customized private placement offering memorandums since the 1990’s. Those initiatives have since led to raising hundreds of millions of dollars for tens of dozens of projects..
Always in full compliance with the regulatory regimes governing any particular offering, our experts take a holistic approach to preparing business plans and private placement offering documentation. To illustrate our approach, we are relied on to provide guidance with regard to terms and conditions that address both the needs of demanding investors and the goals of those seeking to raise capital for any type of project.
Without disclosing the customized terms of the “Rossi Offering,” the team at PPM has been engaged by literally hundreds of entrepreneurs and fast-moving enterprises in the course of their seeking to raise startup funding and/or additional working capital for specific projects. Our expertise and fluency extends across virtually every industry and a broad spectrum of products and services.
The entire PPM extends our heartfelt congratulations to Alexander on his historic Indy 500 win and to his parents Pieter and Dawn for safely and steadfastly watching over Alexander in the course of their supporting his passion and helping his dreams come true.