Document background
A Confidential Investment Memorandum is a crucial document used in private investment transactions under German law when companies seek to raise capital from qualified investors. It provides comprehensive information about the investment opportunity while maintaining confidentiality and complying with German securities regulations. The document is typically used for private placements, M&A transactions, or fund raises, containing detailed business information, financial data, risk factors, and investment terms. Under German jurisdiction, it must comply with the Wertpapierprospektgesetz (WpPG) for securities offerings and the Kapitalanlagegesetzbuch (KAGB) for investment funds, while adhering to strict confidentiality requirements. The memorandum serves as both a marketing document to attract investors and a legal document to ensure regulatory compliance and risk disclosure.
