The Private Placement Memorandum is the documentation required by the SEC and describes the investment in detail. The PPM is over 100 pages and has multiple sections, including; the investment summary, partnership agreement, and the subscription agreement.

The PPM also spells out every potential risk of investing. For a new investor who has never seen a PPM before, the lengthy risk section may be a little daunting, but it is important that investors understand the risks associated with the investment.

The subscription agreement is the document investors will complete, review and sign. It includes; basic information on the investment, units being purchased, accredited investor’s declaration form, and the total amount being invested.