Our team at Prospectus LLC can help you create a hedge fund Private Placement Memorandum. A hedge fund can be an onshore entity or domiciled in an offshore jurisdiction. We assist with both onshore and offshore private placement memorandums for hedge funds.
Private Placement Memorandum
To meet investor standards and comply with various securities rules, writing a private placement memorandum is both prudent and strategically sound. Most accredited investors will want to read a company’s PPM or other disclosure documents. To sell stock or bonds will require more than a business plan. A private placement memorandum can be structured to sell debt securities such as notes or bonds, or convertible bonds or convertible notes. In addition, for a stock offering, a PPM would be drafted and written to show such vital information as the share price or preferred stock terms, or even warrants. A private placement memorandum offering document, much like a business plan or a prospectus, is an opportunity for the issuer to highlight their strengths and positioning. Within the PPM document would be the terms of the offering and securities, the risk factors of the company, securities rules, tax implications, management and team leader biographies, the subscription agreement, and other disclosure information. The subscription documents, such as the investor questionnaire and the subscription agreement, form the basis of the contract between the issuing company and the purchaser of the securities. The length and sophistication of a private placement memorandum PPM will vary from business to business. Some private placements are hundreds of pages long, while others are closer to 40 or 50 pages. Our team at Prospectus LLC will ensure your offering is structured appropriately.
The private placement memorandum offering document is the most relevant disclosure document following a company’s business plan and financials, which often times is incorporated throughout a PPM. A well written private placement memorandum lets investors of all types, from venture capital, to private equity, to QIBs (qualified institutional buyers) to accredited investors, know the issuer is serious. For nearly all investor classes, a private placement offering memorandum indicates that the company seeking to raise capital has attempted to comply with various securities laws and business practices. In addition, it is important to give investors a PPM to protect against investor grievances if the company goes under. Within the PPM will list the risks of the company and their products or services. In addition, securities rules and other factors must be disclosed. Thus, it can also be detrimental from a legal standpoint to not write a private placement memorandum. A good business leader and his team will know that writing a PPM can make or break a company’s chances at raising money for their venture.
Our staff at Prospectus LLC has the experience and background to write your private placement memorandum in a cost effective, timely manner, all the while being compliant and meeting or exceeding investor standards. Our staff takes price in working in tandem with our clients to see their project and funding needs to fruition.