HechtSolberg and Tyler W. Cramer are pleased and excited to announce their alliance to help clients raise equity and debt financing from private investors.
In the current economic climate, many home builders, land developers and businesses are seeking alternative funding sources. One of those alternatives — private placements — raises equity investment or debt financing from private parties with investment offerings that are exempt from certain requirements of federal and state securities laws.
Our combined expertise will improve client opportunities for private placements, creating another needed source of real estate and business financing.
Our combined services include:
- Structuring the investment vehicle — addressing and resolving issues surrounding governance, management, compensation and distributions.
- Determining the manner of offer and the applicable exemptions – observing the requirements surrounding accredited investors, sophisticated investors, suitable investments, broker/dealers and purchaser representatives.
- Navigating the prohibitions against general solicitations and advertising – taking the precautions necessary to preserve the private placement exemptions.
- Planning and executing due diligence investigations – identifying and disclosing the potential pitfalls, and making sure the deal makes sense.
- Advising how to keep records for investor relations in good order – the best data in the world is of little use unless it’s organized and accessible.
- Counseling on investor communications – keeping your investors informed is key to ensuring they are satisfied, and that bumps in rough times are smoothed.
- Counseling on relationships with intermediaries, such as brokers, dealers and finders.
Seeking equity from outside investors is not for everyone.
You may consider using a private placement if you:
- Have a portfolio or CMBS loan maturing within the next year or so, and to refinance, you need to raise additional equity to satisfy prevailing stringent debt-to-equity requirements.
- Have a business model that you are interested in expanding, but do not have sufficient capital to accomplish your goals.
- Plan to take advantage of the current market by investing in distressed real estate, but you need additional capital to capture your target deals.
We can also help if you have been presented with a private placement memorandum and invited to invest in someone else’s venture or project.
Mickey Maher, Michael Van Horne and Tyler Cramer lead HechtSolberg’s team of experienced lawyers focused on all aspects of private placement offerings. They have expertise in overall real estate and business transactions, as well as the intricacies of securities laws and the subtleties of the tax consequences. Mickey and Michael are HechtSolberg partners. Tyler is the new “of counsel” member of the team. Tyler has served as lead counsel on numerous private placements for real estate businesses.
If you are considering a private placement, are interested in learning more about whether a private placement would work for you or have been contacted as a prospective investor, call Tyler Cramer at 619-630-5845 or Mickey Maher at 619-239-3444.