What is a Private Placement?
Private placements can take different shapes and sizes. They are commonly used to place equity, equity-linked, and debt securities with a pool of qualified investors. If done properly, issuers are afforded an exemption from most registration and reporting requirements, either under Section 3(a)(11), the so-called intrastate offering exemption, Section 4(2), an exemption available for transactions not involving a public offering, and Regulation D of the United States Securities Act.
Since Regulation D Offerings are by far the most popular and enable the structuring of a wide cross section of equity, equity-linked, and debt placements, we will focus on this particular exemption for the remainder of this article. This very same Regulation D, however, also closely regulates the process under which a private placement can be conducted legally. Continue reading ‘Private Placements or Regulation D Offerings – What is Myth? What is Reality?’ »