Usefulness of Private Placement Memorandum (PPM)
Julian Montero: The Private Placement Memorandum (PPM) is the starting point for us when we’re with a client preparing the framework of their deal. We emphasis to our clients that the PPM is perhaps the most significant marketing document that they will have with respect to their project.
It is what the agents will be touching; it is what the investors will be touching; and it will be seen by the marketplace.
As critical as the disclosures are in defining the risk factors, the document has to be useful and it can’t be a race to the bottom in terms of putting all the nasty possibilities out there so that you can limit your potential exposure. You need to make sure that this document is useful and we are regularly in touch with the marketplace, in particular the agents that are driving the process in our industry which tends to be ‘China-centric’.