PPMs disclose any lock-up period that new investors must observe, as well as laying out the specifics for when investors will be able to redeem some or all of their investments out of the hedge fund. For example, disclosures generally include the fact that the hedge fund’s manager may invest fund assets in illiquid, difficult to-value securities and that the hedge fund manager reserves the discretion to value such securities as it believes appropriate under the circumstances. The information provided is general in nature and it normally discusses in broad terms the hedge fund’s investment strategies and practices. Learn More About SEC or State Investment Adviser RegistrationĪlthough there are no specific disclosure requirements for offering documents, basic information about the hedge fund’s manager and the hedge fund itself typically, in fact is disclosed. federal or state regulator, the offering document will included a Form ADV Part 2, which describes the investment manager in detail. If the hedge fund’s manager is registered as an investment adviser with a U.S. If the hedge fund accepts non-accredited investors, it should include a set of financial statements. Offering documents for an offshore hedge fund include the private placement memorandum and the subscription agreement. PPM, OM, Prospectus Offering Documents, Private Placement Memorandum In the United States, offering documents include a private placement memorandum (PPM, OM or prospectus), a limited partner (or limited liability company) agreement, and a subscription agreement.
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