Sign Your Legal Documents for a 506c Fund

How to Sign Your Legal Documents for a 506c Fund on Avestor

When investing in a 506c fund through the Avestor platform, you’ll be required to complete a one-time signing process for a set of legal documents. This ensures your investment is compliant with securities regulations and officially recorded.

What Documents Will You Sign?

You’ll be asked to sign a legal packet that includes:

• Private Placement Memorandum (PPM):
  This outlines the fund’s structure, investment terms, and associated risks. Take time to review it thoroughly so you understand the opportunity.

• Operating Agreement:
  This explains how the fund is managed and structured, including the fund manager’s responsibilities and your rights as an investor.

• Subscription Agreement:
  This confirms your investment amount and formally documents your participation in the fund.

• Exhibit B – Distribution Methodology:
  This section describes how income and profits will be allocated between you and the fund manager. Review it carefully, as it directly impacts your returns.

• Bad Actor Disclosure:
  You’ll be asked if you’ve been involved in any disqualifying events. If you answer “Yes,” you’ll be prompted to briefly explain.

• Entity Details and W9:
  Based on your selected investing type (Individual, LLC, Trust, etc.), you’ll need to enter accurate entity information. After signing, you’ll be prompted to complete your W9 in a separate step.

When Do You Sign?

You’ll be prompted to sign once you reach the end of your registration process on the Avestor platform. A document packet will appear for each investing type you’ve selected.

Do You Have to Sign More Than Once?

Yes—if you’re investing under multiple entities (e.g., personally and through an LLC), you’ll need to complete a separate packet for each one. Each entity must have its own compliant records.

How Do You Sign?

1. Enter your legal name on the first page.
2. Review all documents to understand the structure and risks.
3. Complete the distribution section and investment amount.
4. Answer the Bad Actor disclosure.
5. Select your investing type and enter the appropriate entity info.
6. Electronically sign the documents.
7. Complete your W9 (separate video or form provided).

Final Tip

This is a legal agreement, so please review everything carefully. If anything is unclear or you want to double-check terms, reach out to your fund manager before signing.

Once complete, the fund manager will review your profile, coutersign the document, and approve your account. You’ll then be able to fund your investment and start tracking performance in your Avestor dashboard, when the time comes.