Updated almost 7 years ago on . Most recent reply
506(b) or 506(c) Which One
What are the pros and cons between a 506(b) and 506(c) offering from a sponsor's perspective?
Which rule do you typically choose for your offering and what are the reasons you choose this rule?
Thanks!
Most Popular Reply
@Simon C. 506 (b) is much more common today than 506 (c). When you do 506 (c) there is an additional step of verification for the passive investors to show they are truly accredited. With 506 (b) you are also able to have up to 35 sophisticated investors in your deal. This becomes a popular selection for newer sponsors as they have friends/family investing in their deals.