Funds

The Qualified Client Problem for Fund-of-Funds Managers

Crowdfunding, Funds, Investment, Investors, Securities

If you’re managing a feeder fund or fund of funds, you’ve probably spent time making sure your investors qualify under Reg D. You’ve collected investor questionnaires, reviewed accredited investor representations, and followed the subscription procedures established in your offering documents. Depending on whether you’re using Rule 506(c), you may have also completed additional investor verification.

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Investment Adviser Exemptions: Why Your State Matters

Funds, Investors, Private Equity, Regulation D

Managing a feeder fund or fund of funds involves more than complying with the securities laws governing your investment offering. Most sponsors pay considerable attention to Regulation D, their offering documents, and the Investment Company Act. However, the requirements applicable to the company managing those investments often receive much less attention. Your fund may qualify

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Single-investment feeder fund and potential investment adviser obligations

Does Managing a Single-Investment Feeder Fund Make You an Investment Adviser?

Funds, Regulation D, Securities, Syndication

You’ve identified a real estate syndication that you believe is a strong investment opportunity. You’ve reviewed the underwriting, evaluated the sponsor’s experience, examined the financing, and spent time understanding the business plan. After completing your due diligence, you’ve decided it’s a project worth bringing to your investor network to buy into the syndication. Rather than

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Private fund exemption compared with fund manager investment adviser compliance

Your Fund Is Exempt. Is Your Fund Manager?

Funds, Investment, Private Equity, Real Estate

If you’re managing a private investment fund, you’ve probably spent considerable time making sure your offering complies with federal securities laws. You’ve worked with attorneys to prepare your Private Placement Memorandum, Subscription Agreement, and operating documents. You’ve selected a Regulation D exemption, filed your Form D, and established procedures for accepting investors. You may have

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RIA and broker-dealer capital distribution for a private real estate fund

Raising Capital Through RIAs and Broker-Dealers: Is Your Fund Big Enough?

Funds, Investment, Raising Capital

A $10 million or $20 million real estate fund can feel substantial when you’re the sponsor responsible for raising it. Depending on the strategy, that may be more than enough capital to acquire several properties and execute the business plan. The calculation can change when RIAs, broker-dealers, and licensed securities professionals become part of the

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When There Is No Property to Sell, You Have to Sell the Sponsor

Funds, Private Equity, Securities, Syndication

One of the advantages of raising capital for a real estate syndication is that the sponsor usually has something very specific to talk about. There is a property. There is a market. There is a purchase price, financing structure, rent roll, renovation plan, projected cash flow, and business plan. Investors can dig into the details

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Illustration showing a Regulation Crowdfunding offering and a Rule 506(c) offering operating side-by-side, allowing retail investors and accredited investors to support the same company through separate fundraising structures.

How Startups Are Combining Reg CF Marketing with 506(c) Capital

506(c), Funds, Real Estate, Regulation CF, Securities

Why More Founders and Sponsors Are Exploring Side-by-Side Offerings   Most founders begin the fundraising process with a fairly simple objective: raise enough capital to execute the business plan. Whether the goal is launching a startup, acquiring an asset or business, expanding a franchise, developing a real estate project, or purchasing an apartment complex, the

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When Feeder Funds Raise Investment Adviser Questions

Business, Funds, legal, Real Estate, Real Estate Transactions, Regulation D, Securities

Understanding How Your Role Changes and Why It Matters At a high level, feeder funds are not difficult to understand. Capital is raised from a group of investors, pooled into a single entity, and that entity invests into a larger syndication. From a structural standpoint, it’s a clean way to organize capital and participate in

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