Syndicates provide a simple and easily understood platform to enable small groups of investors to participate in an investment normally restricted to sophisticated investors.
Syndicates are formed by a promoter who brings together friends and colleagues personally known to them for the purposes of investing.
– Not a partnership
– Investment Contracts held individually
– Pre-emptive rights over each other’s Investment Contracts
– Investment is not pooled but held separately
– Not joint expenses or receipts
These comments only apply if the syndicate template is used. A promoter may use their own structure as they may be advised.
Exemptions from the Management Investments regime of the Corporations Act only applies if the restrictions in Section 1012E are adhered to.
– 20 or less investors
– Maximum investment per syndicate $2,000,000
– Personal offers only can be made.
– Only one syndicate can be offered in any 12 month period.
The specific restrictions are set in