Provided by: Jennifer Kirschenbaum, Esq.
May 16, 2023
I have an investment opportunity overseas. What are the main concerns I should have with putting my money into this new venture?
Thanks in advance.
Doctor, that’s a good question. The biggest problem with investing overseas is remedy on default or in a dispute. How can you protect yourself? The answer is if it’s a small position, and you’re not being given a large part of the company as a minority investor, you likely will not have much recourse available, and if it’s a party overseas with no assets in the United States, if things go sideways, you’ll likely have zero recourse and 100% risk of loss. Just be mindful of that when making an investment overseas and really any investment unless you’re taking direct collateral at a securitized position there’s always risk even when you do a security. Before signing and wiring, definitely have the investment documents reviewed. Make sure you understand what you’re getting yourself into and how you can potentially get yourself out. Of course with any investment financial assessment it is key try to see what the books and records look like and the debt position before making a decision.