What Is A Reg D Offering?

Reg D offerings are the most common private placements used for raising capital. Hedge Funds, Private Equity and Venture Funds and Real Estate Funds all use Regulation D for starting and growing their investment funds. Companies also use Reg D to raise capital for expansion or for strategic acquisitions’s. Reg D’s requirements for raising investment money are straight forward and offer two options for raising capital. Whether you are a fund manager or small business owner, Reg D is a great option.

Typical documents required include a Private Placement Memorandum (PPM), Subscription Agreement, and other related documents to fulfill the disclosure and other legal requirements. Our flat fee Reg D packages are the most efficient way to raise capital and get the money raised you need for your new fund or business venture. Randall & Associates have helped hundreds of clients start hedge funds, real estate funds, and other types of investments using Regulation D.

What Are The Rules For Regulation D?

Regulation D offerings can follow one of two different options, 506b or 506c. Each option allows you to raise an unlimited amount of capital, however there are other significant differences between 506(b) and 506(c) that you should be aware of when using Reg D to raise capital. We’ve summarized the differences below:

Reg D 506(b)

• Raise an unlimited amount of capital

• Cannot generally solicit. Must raise from investors already in your network.

• Investors must be accredited investors. No need to independently verify accredited status of investors. Investors sign document asserting accredited status.

• File a FORM D with the SEC and applicable states as required by state blue-sky laws.

Reg D 506(c)

• Raise an unlimited amount of capital

• Can generally solicit. You can solicit online and using social media, etc.

• Investors must be accredited investors. You must independently verify accredited status of investors.

• File a FORM D with the SEC and applicable states as required by state blue-sky laws.

Our REGULATION D services include the structuring and creation of the Regulation D offering. All of the applicable offering documents and filing the FORM D through the SEC’s Edgar filing system.

We offer flat fee pricing and provide you with our broker contacts, fund audit and administration contacts, banking contacts and everything else you need for a successful offering.

What Are The Differences Between Reg A and Reg D?

Randall & Associates has experience helping fund managers and businesses raise money the right way, which includes making sure each compliance document is correctly and timely filed with the SEC and the applicable states. Contact us today for a free strategy session on the best way to raise money and manage your next investment fund or start-up.

CALL (435) 612-0422