What Is a Private Placement Memo?
A private placement memorandum, or PPM, is a document that describes the risks, strategy, and features of an investment vehicle that is not available to the general public.TypesPPMs exist and are required for several types of non-public investment vehicles. This includes hedge funds, limited partnerships, and private equity investments. The PPM will describe the terms of the shares, units, or partnership made available.FeaturesA PPM will include a section on the investment strategy, investment manager, investor requirements, minimum investment amount, and risks of investing. It will also contain many legal disclaimers absolving the company from loss of capital.BenefitsThe PPM is a legally binding document that clearly outlines the responsibilities of the company. It provides potential investors much of the information required to make an investment decision.ConsiderationsPPMs will include information on who is eligible to invest. This is often limited to wealthy and experienced investo
