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Regulation D Resources

Regulation A+ has seen exponential growth in issuer use and the volume of capital raised year over year since the 2015 rule changes that created the Tier 2 Regulation A+ program. More companies and funds are realizing the investor acquisition capabilities of the program and are opting to execute under Regulation A+ to maximize their capabilities for raising capital.  

One significant benefit that Regulation A+ has is the selling shareholder feature. Regulation A+ allows up to 30% of the offering amount to be securities sales from existing shareholders selling their personally held shares through the Regulation A+ offering and at the Regulation A+ offering price. This feature has been especially popular with asset funds as it allows an asset fund to offer a liquidity option for the fund’s investors that does not require the selling of fund assets to leverage cash for a redemption of shares. 

In fact, the selling shareholder feature is so effective for asset funds that many of these funds that were going to operate with a fixed term are now able to operate in an “evergreen” model as liquidity is provided for through the annual Regulation A+ offering being executed by the fund.

Interested in a Regulation A+ offering? Engage the experts in Regulation A+ offering preparation and Regulation A+ investor portal builds. Call us today to discuss! (720) 586-8610.