Document background
The Private Offering Memorandum is a crucial document used in German private capital markets for non-public offerings of securities. It serves as the primary vehicle for providing detailed information about an investment opportunity to qualified investors while maintaining confidentiality and compliance with German securities laws. The document is typically used when companies seek to raise capital without making a public offering, allowing them to avoid the more stringent requirements of a public prospectus under German law. It must comply with various German regulations, including the Securities Trading Act (WpHG), Investment Products Act (VermAnlG), and relevant EU directives. The memorandum includes comprehensive information about the company, its business, financial condition, risk factors, and specific terms of the offering, tailored to sophisticated investors while maintaining the private nature of the placement.
