My name is Tilden Moschetti. I’m a syndication attorney with the Moschetti Syndication Law Group. One question that I oftentimes hear is, “What must I disclose in a private placement memorandum?”
As a syndication attorney, sometimes clients ask, “What exactly must be disclosed?” Well, the answer really is as much as possible. It’s always better to disclose, disclose, and then you’ll be safer in the end, rather than wondering if anybody’s ever going to find anything out.
If there is anything that you think may cause an investor to change their mind about investing, be that a conflict of interest that exists, be that a risk that’s inherent, be it something about the underlying investment, you’re way better off making it very, very clear – crystal clear – that it exists and to disclose it blatantly. So that it’s very clear, rather than trying not to disclose.
I like to go through all of the different things that could happen in a transaction or an investment and really make sure that we consider if there’s anything else that should be disclosed so that we can make sure to include it. Because it can just bite you in the end if you don’t.
If you need some help with your syndication, be it for real estate, you’re an entrepreneur raising some capital for your business, or you’re putting together that new cryptocurrency hedge fund, give us a call. My name is Tilden Moschetti. I am a syndication attorney, and if you need help just with your private placement memorandums, we’ve got you covered there too.