What is Private Placement?
Private placement involves raising capital by selling to a smaller number of select investors. These investors often include mutual funds, large banks, pension funds, and insurance companies. In contrast, a public issue involves making securities available in an open market to a variety of investors.
Federal and state securities laws regulate nonpublic offerings of securities. However, due to the investors involved in private placement, these laws include exemptions from registration allowing companies to raise funds without having to go through a lengthy and expensive registration process.
At PEARSON BUTLER Law, our securities attorneys have significant experience in coordinating and structuring nonpublic offerings which qualify for exemptions from registration. Through private placement, we use all types and sizes of privately placed securities including debt, common stock, preferred stock, limited liability company membership interests, and warrants. In addition, our legal team strives to stay informed on the latest issues relating to nonpublic offerings of securities such as general solicitation, accredited and non-accredited investor requirements, and crowdfunding.
Other Securities Law Services Available
At PEARSON BUTLER Law, our securities lawyers assist clients them in the following areas:
- Blue Sky Compliance
- Business Transactions and Contracts
- Corporate Governance
- DTC Eligibility
- Mergers & Acquisitions
- Over-the-Counter Markets Compliance
- Private Placement
- Public Offerings
- Reverse Mergers
- Rule 144 Opinion Letters
- SEC Reporting and Compliance
Contact a Securities Attorney
For more information on private placement, contact a securities attorney at PEARSON BUTLER Law who can help with private placement, DTC eligibility, securities arbitration, securities transactions, or recovery of investment losses by calling 801.495.4104.