What is Private Placement Memorandum (PPM)?
A private placement memorandum (PPM) is the legal document a fund provides to prospective investors during fundraising, describing the fund's strategy, terms, risks, GP biographies, and financial information.
The PPM is the primary disclosure document for a private fund offering. It must contain: a description of the investment strategy and target returns, the fund's legal structure and terms (fees, carry, waterfall), biographies of the key investment professionals, risk factors, and financial statements of prior funds.
While a PPM is a legal requirement for Regulation D offerings, it also serves as the core marketing document during LP meetings. GPs typically prepare a shorter presentation deck alongside the full PPM for initial meetings.
Also known as: PPM, offering memorandum, OM