Five Questions With: Guy Asadorian Jr.

Guy Asadorian is a wealth director for BNY Mellon Wealth Management, responsible for business development in New England. Previously he was principal and co-founder of Tameracq Partners, a lower-middle market mergers and acquisitions firm.

PBN: You recently moderated a panel discussion about angel investing. How does angel investing differ from other private equity investments? In fact, how many kinds of private investment vehicles are there?
ASADORIAN:
Angel investing typically refers to the initial private investment made to a startup before it has begun to generate revenue. That differs from venture capital investment, which usually comes after a startup has gained some traction and reached certain operating milestones. Once a company grows successful and is generating substantial revenues, private equity firms are more likely to make investments. Angel investing, by its very nature, is much higher risk because it is made when a startup is still fairly new.

PBN: What is the biggest advantage to a business looking for capital that an angel investment offers? ASADORIAN: It is nearly impossible for an early-stage company to procure bank debt to fund its growth. As an alternative, startups turn to angel investors for the capital necessary to fund their business plan. What’s more, the right angel (or angel group) often bring critical expertise or business contacts that help the startup succeed.

PBN: Is Rhode Island a good angel investing environment (as in, are a lot of angel investments made here)? Why or why not?
ASADORIAN:
It’s good and getting better. The emergence of a few local incubator programs have increased the number of viable startup companies for potential investment. There are also a couple of established angel groups, that are always on the lookout for opportunities.

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PBN: What kinds of businesses are most appropriate for an angel investor? Or put another way, what kind of business should be looking to attract angel investors?
ASADORIAN:
Most angels are looking to invest in companies that have substantial growth prospects and could potentially make returns that are five or 10 times their investment. So generally angels tend to invest in the faster growing segments of the economy such as technology, biomedical and business services-type companies.

PBN: Who is a potential candidate to become an angel investor?
ASADORIAN:
Generally at BNY Mellon we work with high net worth or accredited investors who want to include this kind of investment vehicle and, if it fits with the clients’ goals, we counsel them to include it as part of a highly diversified portfolio. We believe it is very important that each investor understands what he owns and how to balance riskier asset classes with those that are lower risk. The bottom line is to develop a portfolio tailored to help a client meet his or her particular financial goals and this particular kind of investment may or may not be suitable.

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