Real Estate Investment Strategies in Offering Docs Must be Clear and Followed
If your private fundís offering documents state that your fund will invest only in real estate, be aware that those are not just words. Stepping outside the parameters of your fundís stated investment strategy may lead to trouble, both for the fund and for the fund manager. This is also true with unclear and/or inconsistent investment strategy wording between your private placement memorandum and other fund documents. Language, it turns out, matters.