Also known as an offer memorandum or “PPM”, a private placement memorandum (PPM) is a document that outlines the terms of the securities being offered in a private placement. Private equity firms often seek to increase their growth without taking on debt or going public, and a PPM is the document used to sell investments in securities (usually stocks and bonds) to private investors. Carolina Financial Securities and Carofin only offer one type of alternative investment, those sold as private placements. I have more than 25 years of experience representing individual and business clients, large and small, in transactions such as mergers and acquisitions, private securities offerings, commercial loans and commercial ventures (supply contracts, manufacturing agreements, joint ventures, intellectual property licenses, etc.). Let's review what you can expect in terms of closing documents, such as the private placement memorandum. Offer memos are similar to prospectuses, but are for private placements while prospectuses are for publicly traded issues.
An offer memorandum is a legal document that sets out the objectives, risks, and conditions of an investment related to a private placement. A manufacturing company may also use a PPM to raise capital and expand the number of units and manufacturing plants. Disclosure of a private placement memorandum requires the issuer to work with a private placement securities lawyer who is well aware of the rules. The purpose of a PPM is to help investors understand the security or investment instrument. Clients have hired me internationally together with local lawyers in several European countries, Australia and Africa in private legal matters. If you are considering using private placements to raise money, you must write a PPM that complies with current regulations.
