PPM (Private Placement Memorandum)

A private placement memorandum is the formal offering document a GP gives prospective LPs, describing the fund's strategy, team, track record, terms, and risk factors. It is both a marketing document and a legal disclosure designed to protect the GP from claims that investors were misled. Many sub-institutional venture funds raise on a deck plus the LPA alone, adding a full PPM as the LP base gets more institutional.