Creating a Private Placement Memorandum (PPM)

What Is a Private Placement Memorandum?

When securities are sold as “private” transactions because they fall under an exemption from federal and state law, Private Placement Memorandums (PPM) are typically used. Other terms for a PPM include offering document or offering memorandum.

The PPM itself is a legal document that is given to prospective investors, disclosing all relevant information related to the investment opportunity. It is not intended to be a persuasive document like a business plan might, but rather its purpose is to lay out all of the details regarding the investment, allowing the investor to determine for themselves if they want to move forward.