Regulation D, Rule 506(c) Blind Pool Offering – Brilliant option of raising funds
Regulation D, Rule 506(c) Blind Pool Offering is a brilliant option to raise a fund in the USA.
Why would I need to register a fund? Well, it’s a simple answer. The financial sector is heavily regulated, and you cannot start raising money without proper registration of your fund with a regulator. If you’re raising money from a few investors, you would need to contact a lawyer and have a set up just a basic Incorporation and prepare Articles of Association or Shareholders Agreement. If you are pooling more money for the further investment, you should register your company with SEC. There are a few different options to explore 506(b) or 506(c).
I would prefer to go with 506(c). Here are the reasons:
- Allows general solicitation and advertising in private placement offerings so long as sales are made only to accredited investors. You can advertise your fund (general solicitation) through online media.
- The fund is registered as the exempted fund.
Purpose of the private equity fund:
- Private equity (acquiring other companies).
- Venture Capital Fund.
- Property Investment.
When you set up your fund, you will need to prepare:
- Private Placement Memorandum
- Subscription Agreement
- Securities Notice Filings
- Formation of a Management entity and drafting its Operating Agreement
- Formation of a “Fund” entity and drafting its Operating Agreement
- Formation of a Single Purpose, Title-holding entity for your first project and drafting its Operating Agreement
- Marketing materials (flyers, postcards, website, etc.)
- Investment Summary
Filing with SEC, you will need to:
- Open EDGAR (EDGAR is the electronic filing system created by the Securities and Exchange Commission for corporate filings.) account with SEC.
- Submit Form D to SEC through EDGAR website.
- “State Blue Sky” notify the state securities agencies when a security has been sold to one or more or their residents and giving those states information and jurisdiction.
- Submit soliciting materials to SEC for their approval.
- Verify that the investors are accredited investors, which could include reviewing documentation, such as W-2s, tax returns, bank and brokerage statements, credit reports and the like.
Timing: The normal time-frame to complete an offering like the Blind Pool Offering is 60-90 days.
I wouldn’t suggest you get this done yourself. It’s heavy lifting. Hire a lawyer and use this article just as a checklist :).
15,295 responses to “Regulation D, Rule 506(c) Blind Pool Offering – Brilliant option of raising funds”
Leave a Reply
You must be logged in to post a comment.
risperdal 4 mg cost risperdal 4 mg canada risperdal 1mg pills
http://www.hydroxychloroquinex.com/# aralen price usa
motrin 600mg without prescription motrin over the counter motrin generic
Elias, USA 2022 04 24 08 55 23 safe place to buy cialis online
plaquenil where to buy https://www.hydroxychloroquinex.com/#
cardizem generic cardizem generic cardizem 120 mg tablets
generic chloroquine http://hydroxychloroquinex.com/
chloroquine 250mg
sildenafil pfizer 50 mg avis viagra en vente libre en belgique viagra generique en ligne
chloroquine online canada
https://www.hydroxychloroquinex.com/
sumatriptan purchase sumatriptan coupon sumatriptan nz
perte de poids optavia
where to buy robaxin 500 mg robaxin australia robaxin cheap
ing chloroquine online http://www.hydroxychloroquinex.com/#
chloroquine pills
generic chloroquine
over the counter cialis generic cialis india cialis manufacturer coupon lilly
imitrex 100mg cost where can i buy imitrex imitrex 50 mg without a prescription
plaquenil generic https://www.hydroxychloroquinex.com/#