Deal Disclosure template & process
One of the key advantages with Avestor's customizable funds is that investors only need to sign a single set of fund legal documents but can then participate in a broad range of deals.
Fund PPMs provide high level disclosures and risk factors but do not get into the details for individual investment opportunities inside a customizable fund.
Avestor has created an Individual Deal Disclosure that enables fund managers to ensure that investors are fully aware and disclosed on individual deal terms, risk factors and other information specific to an investment opportunity.
The process for fund managers is as follows:
- Create your deal or investment on Avestor's platform
- Access a copy of our latest version of the templates. These templates are available to fund managers either from the fund manager Slack group and our shared drive for fund managers. If you are not sure where to get the templates, please contact us at firstname.lastname@example.org.
- Follow the instructions in the deal disclosure template to create your deal disclosure for your investment opportunity.
- For your first few deal disclosures, Avestor highly recommends that you review them with us in our biweekly Deal Disclosure calls to provide guidance. For complex deal structures, you may need to also have your attorney review the deal disclosure.
- Email the deal disclosure to Avestor team. We will load it on the platform & set it up for e-sign.
- Investors will provide soft commits on a deal or request an allocation into a specific investment.
- Using Avestor's e-sign on demand feature (in the Investments menu), send each investor an electronic version of the deal disclosure for signature.
- After the investor reviews & signs the deal disclosure document, a copy is automatically uploaded into their account.
- Fund managers can check the status of the deal disclosure document at the e-sign on demand menu. Once signed, the fund manager can accept funds from the investor.
- After capital is received and the deal is converted into an investment, the fund manager can allocate the investor into the investment.
This process protects both the investor and the fund manager and ensures clarity and transparency on investment opportunities.