private placement memorandum

A private placement memorandum (PPM) is a detailed legal document used by companies to outline the terms, risks, and details of an investment offered privately to select investors, rather than the public. It provides essential information about the company, the investment opportunity, financial data, management, and potential risks. The purpose of a PPM is to inform prospective investors, ensure transparency, and help protect the company legally by clearly stating what investors can expect. It is commonly used for private equity, venture capital, or real estate funding, facilitating informed decision-making while complying with securities laws.