Finders Exception to Broker-Dealer Registration in the Capital Introduction Space

Simon Riveles Capital Introduction, Finder's Exception, Private Placement, Third Party Marketing

As competition for capital has steadily increased for private companies and private funds, issuers and managers have turned to the services of third party marketers (“TPMs”) to raise capital or sell their funds to prospective investors. In the hedge fund space, TPMs typically demand an exclusive arrangement with the fund and approximately 20% of all fees. But due to the nature of their services and …