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Updated over 5 years ago, 05/12/2019

User Stats

463
Posts
488
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Charlotte Dunford
  • Investor
  • Johns Creek, GA
488
Votes |
463
Posts

SEC Regulation - 20% rule?

Charlotte Dunford
  • Investor
  • Johns Creek, GA
Posted

Hi all. Question: When you raise money from your LP's, do you have to limit each LP's to a maximum contribution of 20% of the total capital needed to close the deal? I heard that this is a SEC related regulation. Is that true? But if I had an LP's who's contributing all the capital needed to close the deal, is there a way to get around the SEC regulation and stay legal?

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