Who should invest in mezzanine investment schemes?
Mezzanine investments should only be used by experienced investors who have a good working knowledge of the property development marketplace. The more important question here to ask is perhaps who should not invest in mezzanine schemes? • ‘Mum and dad’ or unsophisticated investors. • Investors who have not got a diversified investment portfolio. • Investors who need liquid assets, or who do not have a longer term investment horizon. As the recent case of a mezzanine investment scheme collapse shows, it’s important for your financial planning clients to have a clear understanding of the investment that they are putting their hard earned money into. And they should never overexpose themselves to such investments, even if it does appear, on the surface at least, to be a relatively safe investment. Diversification should always be the key. There have been a lot of hard luck stories of people losing their life savings with the recent mezzanine investment scheme collapse, but if those advisi
