Mezzanine investing

We're approaching retirement and considering all our investment options. What's mezzanine investing and should we consider this?

Mezzanine investing usually operates outside the strict financial services laws that protect you when you invest in superannuation, managed funds or shares.

It involves putting your money into projects and ventures financed outside the mainstream financial markets. It's legal, but the law assumes you know the ropes, understand the risks and can fully look after yourself.

Whether you should consider this form of investing requires further investigation, however ASIC state three golden rules that you should follow when it comes to considering mezzanine investing.

Golden rule 1
Unless you know that someone is well qualified, experienced and honest, don't take their advice. Ask how qualified the advisor is to give advice about mezzanine investments and ask what is in it for them because there may be high commissions to be gained from recommending the investment product.
Golden rule 2
If you'd never heard of mezzanine investing before, then save your time and money.
Golden rule 3
Consider your own needs and situation for instance: are you really looking for a 'very illiquid' investment, that is, one that's hard to sell?

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