An offering memorandum, also called a private placement memorandum (PPM), is the legal document that describes a fund's terms to prospective investors: strategy, structure, fees, liquidity, risks, service providers and investor eligibility. Investors must receive it before subscribing.
The OM is the fund's disclosure document and the basis on which investors make their decision. It is drafted by fund counsel, approved by the directors and filed with the regulator in most domiciles. Any change to fund terms is made by amending or supplementing it.
For a segregated portfolio, there is usually an umbrella OM for the SPC and a supplement for each portfolio setting out that fund's specific terms.
Every POD fund has an offering memorandum supplement prepared as part of onboarding; the legal cost of preparing it is the pass-through setup cost on the pricing page.
Get in touch for a demo
