Favor Point Capital, LLC
Customer Relationship Summary (Form CRS)
Favor Point Capital, LLC (FPC, we or Firm) is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). There are different ways you can get help with your investments. You should carefully consider which types of accounts and services are right for you. We are a broker-dealer and provide our clients with brokerage services. This document gives you a summary of the types of services we provide and how you pay for those services. Please ask us for more information.
Free and simple tools are available for you to research firms and financial professionals at www.investor.gov/CRS, a website maintained by the SEC. These tools can also provide you with educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
We offer brokerage services to retail investors through our investment professionals and our online platform, which includes making recommendations regarding the buying of unregistered securities (private placement securities) by retail investors. Those services include the determination of suitability for investment in private placement securities, making investment recommendations consistent with your investment strategy, and facilitating the execution and settlement of your private placement securities transactions.
As your relationship with us is primarily via our online platform, our relationship with you is based upon information provided to us electronically about your investing profile such as financial situation, investment experience, and investment objectives. Therefore, it is important that you advise us of any changes in your financial situation or investment objectives.
We do not provide on-going monitoring of private placement securities. Additionally, our services are provided on a non-discretionary basis, and while we may recommend investments for you, the ultimate investment decision regarding the purchase of a private placement securities will be yours.
Our investment advice specializes in a limited selection of investments. Other firms could provide advice on a wider range of choices, which might have higher or lower costs. We generally require retail investors be "accredited investors" to purchase private placements through us.
Additional Information: For additional information on our brokerage activities please see our Regulation Best Interest Disclosure, your subscription agreement, or other applicable documents. You can also contact us about our services at (623) 663-3737 and we will be happy to discuss with you.
Conversation Starter - Ask your financial professional:
"Given my financial situation, should I choose a brokerage service? Why or why not?"
"How will you choose investments to recommend to me?"
"What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?"
What fees will I pay?
Principal Fees and Costs: When you invest through us, your net invested amount is not impacted by fees and/or commissions. We do not charge you directly for our services. Instead, we are typically compensated by the investment sponsor — either by the fund itself or its parent company. This compensation is generally an upfront placement fee based on the amount you invest.
In some cases, the fee is paid by the issuer's parent company and does not affect your investment amount or NAV. In other cases, the placement fee is paid by the fund (or a mix of the fund and the parent company) for assisting with marketing and due diligence. This may reduce the fund's available capital or lower its net asset value (NAV), which means your investment returns may be indirectly impacted.
Other Fees and Costs: While we do not charge additional fees, some private placement investments impose additional fees that will reduce the value of your investment over time. You should review the related offering documentation for any investment you acquire for additional information on fees and costs related to those private placement securities.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Please see our Regulation Best Interest Disclosure, and other applicable documents for additional information regarding our fees and costs.
Conversation Starter - Ask your financial professional:
"Help me understand how these fees and costs affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?"
What are your legal obligations to me when providing recommendations? How else does the firm make money and what conflicts of interest do you have?
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you. Here are some examples to help you understand what this means:
- We receive payments from the sponsors and issuers of private placement securities (or their affiliates) when we recommend or sell private placement securities. As such, we have an incentive to recommend that you invest the private placement securities of third parties that pay us over products of third parties that do not pay us or pay us less.
Additional Information: For additional information, please see our Regulation Best Interest Disclosures, and other applicable documents.
Conversation Starter - Ask your financial professional:
"How might your conflicts of interest affect me, and how will you address them?"
How do your financial professionals make money?
Your financial professional's compensation consists of a base salary plus commissions. The commissions are based upon a portion of the sales commissions resulting from your purchase of private placement securities. As a result, your financial professional has a financial incentive to market and sell private placements to you.
Do you or your financial professionals have legal or disciplinary history?
No, please see www.Investor.gov/CRS or https://brokercheck.finra.org for a free and simple tool to research the background and experience of us and our financial professionals.
Conversation Starter - Ask your financial professional:
"As a financial professional, do you have any disciplinary history? For what type of conduct?"
Where can I find additional information?
For additional information regarding our services, please see our Regulation Best Interest Disclosures and other applicable documents, or if you would like additional, up-to-date information or a copy of this disclosure, please contact FPC by phone at (623) 663-3737, or by email at [email protected]
Conversation Starter - Ask your financial professional:
"Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Whom can I talk to if I have concerns about how this person is treating me?"
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Address: 16220 N. Scottsdale Road, Suite 300, Scottsdale, AZ 85254
The information on this website is for informational purposes only. Nothing included on this website should be construed as an offer to sell nor a solicitation of an offer to buy any security. Investments offered will only be available to those investors meeting the definition of Accredited Investor under Rule 501(a) of the Securities Act of 1933 and will only be offered via a confidential Private Placement Memorandum (“PPM”). This material should not be construed as tax or legal advice. Please consult with your trusted advisor(s) before making any financial decision. There are substantial risks with any private investment including general market conditions, lack of liquidity, lack of operating history, interest rate risk, general economic risks, construction and development risks, and potential for changes in tax law. Past performance is not indicative of future results. Investors should not be willing to invest in private placement offerings unless they can afford to lose their entire investment.