Syndication with foreign nationals

[Michael Le]

I potentially have access to a network of affluent, high net worth people in China. Does the SEC Rule 506 Regulation D have any special rules relating foreign national investors? I've heard on the Old Capital Lending podcast mention of requiring foreign nationals to have double the amount of net worth and liquidity (and I'm not sure if that's just for general partners or even a requirement for limited partners). But does the SEC treat foreign nationals differently like lenders do?

[Carlos Flores]

@Michael Le Thanks for listening to our Podcasts! The requirement of a foreign national having double the net worth and liquidity was in relation to lending and specific to those signing on the loan. If your raise is exclusive to non-US-resident foreigners and exclusively conducted offshore then you'd only need to comply with Reg S (for the most part - Rules 901-905) and laws of the foreign nation where you're making the offering. Give me a call if you'd like to chat. Number is in my signature.