Limited partnerships and limited liability companies are generally private companies (i.e., companies that are not traded on stock exchanges) in which investors can buy interests similar to shares of stock in a corporation. Oil and gas investments, real estate investments and private equity funds are often offered to investors through limited partnership interests. These investments are typically sold as 'private placements' under a claimed exemption to the more stringent registration and disclosure obligations applicable to public offerings. To qualify for the most common exemptions, the offeror of limited partnership interests cannot make any general solicitation or advertisement to investors, and investors must (for the most part) be 'accredited' investors meeting minimum requirements of income or net worth. The investment may be in the form of interests or units in a limited partnership or limited liability company.
Private placements are almost always sold under a 'private placement memorandum' ('PPM') describing the investment and its risk factors. A broker-dealer or advisor who sells non-public limited partnerships and other private placements is responsible for conducting reasonable due diligence to make sure that the PPM is complete and truthful.
The investment and securities fraud attorneys at Moulton, Wilson & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton, Michael Wilson and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered an investment loss in a Private Placement, you may be entitled to recover all or part of your investment.