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Podcast: Syndication Law & The Private Placement Memorandum Attorney
Episode: Unlocking The Secrets To Establishing A Pre-Existing Relationship for Reg D Rule 506b
Description: In a Regulation D Rule 506b offering, it's crucial to establish a pre-existing relationship with potential investors. This often involves more than just an introduction, as the relationship must be substantive in nature. The Securities and Exchange Commission (SEC) looks at two key factors in these relationships: the syndicator's understanding of the investor's objectives and the level of investor sophistication and the investor's comfort in asking questions and engaging in dialogue with the syndicator. One common practice to establish this relationship is through a series of conversations, starting with a general discussion about the investor's interests and progressing to...