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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: ‘Can I do both a Regulation D 506b and Reg D 506c in one LLC?’
Description: Tilden Moschetti, an attorney for the Moschetti Syndication Law Group, discusses the question of whether a syndicator can do both a Rule 506b offering (to include non-accredited investors) and a Rule 506c offering (for advertising purposes) at the same time. The answer is complex and depends on the specifics of the strategies used.In general, Rule 506b allows up to 35 non-accredited investors in your syndication over a 90-day period but prohibits general solicitation. In contrast, Rule 506c permits general solicitation, even to unknown investors.Syndicators often wish to combine both rules to attract as much...