The Private Placement Program Office (“PPP Office”) is a network of independent consultants, connectors and facilitators who recognise the enormous economic, societal and environmental benefits of Private Placement Programs to accelerate inclusive global advancement through funding suitable projects and ventures, in a coordinated manner to unlock greater systemic impact.
This is why we also refer to PPP Office as the “Personal to Planetary (and Planetary to Personal) Prosperity Office” because we realise the interconnectedness and interdependence of living systems and are driven to help genuine eligible clients who are committed to funding their own and/or other projects and ventures contributing to regenerative planetary progress, prosperity, peace, potential and possibility.
We are a sister initiative of Earth Family Office, dedicated to enabling, supporting and advancing the inclusive regenerative systemic conditions that by their nature and design will bring about the full flourishing of people and planet.
Private Placement Programs (PPPs), also known by other names such as High-Yield Private Trading Programs, Private Structured Finance Programs, Managed Buy/Sell Programs or Private Placement Project Funding Trade Programs, are a remarkable and little-known specialist niche born in the aftermath of the Second World War to help recover and rebuild devastated economies and infrastructures. Following on from the Bretton Woods Conference in 1944, a plan was devised that encompassed various strategies to create funding for projects which, by their nature, were not meant to create business ventures that would be profitable in the purest sense of the capitalist world. Reconstructed roads, bridges, hospitals, and other infrastructure needs are not typically the first investments sought out by a capitalist prioritising a financial return on his or her investment.
Strictly speaking, PPPs are not treated as an “investment” per se. They are a placement of private capital, or certain other private assets, as untouched collateral into a leveraged arbitrage trading program executed by licensed, specialist, typically independent, traders contracting with suitably authorised top-tier banks.
To help attract private money to create funding for desperately needed projects, the financial and political engineers of this plan created a way for wealthy families and corporations, holding enormous sums of cash and certain other assets, to invest and achieve profits from buying and selling financial instruments, predominantly bank debt obligations such as Medium-Term Notes (“MTNs”), profiting handsomely, and dedicating the bulk, typically 80%, of the profits into needed projects.
Taking advantage of the issuing, trading and leverage capabilities of top-rated banks, Private Placement Program trading is lower risk than in public markets or private equity because it is predicated on these trades being executed as arbitrage transactions, with off balance sheet bank debt instruments bought and immediately resold with pre-defined prices. Buyers and sellers are contracted via “commitment holders” for exit-buyers including large financial institutions, pension funds, insurance companies, and ultra-wealthy families and individuals.
The issued instruments are never sold directly to the exit-buyer, but to a chain of buyers, with each making a pre-agreed profit along the chain to the end buyer. The banks involved cannot directly participate in these transactions but are still profiting from it indirectly by loaning money with interest to the trader as a line of credit, which can be as much as ten times the client’s principal amount. This is their leverage. Furthermore, banks also profit from a share of fees, and for already hosting, or providing new, bank accounts for beneficiaries of the significant profits and commissions involved in each transaction. The client’s principal amount does not have to be used for the transactions, as it is only reserved as a compensating balance (“mirrored”) against this credit line. Said credit line is then used to back up the arbitrage transactions. Since the trading is done as arbitrage, client money isn’t needed to be used but must still be reserved or “blocked” to back each, and every, transaction over the trade program term.
These programs are strictly private and by invitation only and are structured to generate gross profits significantly above those typically achieved in the public markets. Profits vary according to multiple factors including size of investment, economic and market conditions, program and credit line availability, trader requirements, profile and jurisdiction of the client/applicant, and the rating of their bank.
For illustrative purposes, if each arbitrage transaction has a 3% to 5% (300-500 basis points) higher sale price versus purchase price, multiplied by 2 transactions per week, multiplied by, for example, 5x leverage provided by the trading bank credit line to the trader, from such a scenario it is not difficult to envisage the client receiving net profits of double digits each week.
A Brief Guidance Note on PPP “Rules of the Road”
None of the customary standards and practices that apply to normal, conventional business, investing and finance applies to private placement programs. It is a “privilege” to be invited to participate in a Private Placement Trade Program, not a “right.” The trading administrators and managers have a virtually endless supply of financially qualified applicants. All things considered, the trading administrators and their banks will favour the applicant who provides the best paperwork. An applicant should never underestimate what the trading entities knowledge about the client. Failure to provide full disclosure will disqualify the disingenuous. Clients must first prove that they are qualified, not the other way around. Until the client is accepted by Compliance, the Traders, and Trading Banks, no placement can occur. Strict compliance procedures apply to protect the integrity of the financial system. Face‐to‐face interviews with compliance officers and program management are occasionally required, but generally not necessary. Any arrogant or demanding personality will guarantee to be rejected. Only the principal owner of funds is accepted as signatory. Corporations must empower an Officer or Director as sole, exclusive signatory by using a Corporate Resolution. Not only do the funds have to be on deposit in an acceptable bank; they must also be in an acceptable jurisdiction.
It is felony fraud to submit documents or financial instruments that are forged, altered or counterfeit. Such documents are promptly referred to the appropriate law enforcement agencies for immediate criminal prosecution.
The practices, procedures and rules are determined by the U.S. Federal Regulatory Authorities, European Central Bank, Bank for International Settlements, licensed traders and trading banks. Hence by adhering to the relevant rules when making their decisions on whom to accept and whom to reject, the traders and trading banks maintain their licences for this important and highly profitable trading activity. Contract terms, yield, schedules, etc., are made to fit their needs and schedules – and not the caprices or demands of client applicants. This marketplace is highly regulated and strictly confidential, and absolute confidentiality by the client is a key element of every contract. A client who breaks confidentiality will precipitate instant trade contract cancellation. Finally, submission of the application documents to more than one trade management group at a time is termed “shopping”. If a client “shops” their file, they can expect this fact to be quickly disseminated and known among the program management groups who maintain close communication – and will then be rejected by all.
We welcome serious enquiries from interested clients or from those who are in direct communication with such clients. We can be reached at Info@PPPoffice.com
DISCLAIMER: The content on this page is for informational purposes only. It should not be regarded as advice or an offer, invitation or solicitation to enter into any financial obligation, activity or promotion of any kind as defined by the Financial Services and Markets Act 2000, as amended, or equivalent regulations pertaining to other jurisdiction(s) applicable to your financial activities. Clients are expected to perform their own due diligence and seek out the services of an appropriate relevant professional(s), as needed.