What are the disclosure requirements for private equity investments?

Private equity investments are subject to certain disclosure requirements in Washington. These requirements are governed by state and federal laws. Generally speaking, private equity investors must provide prospective investors with any material facts related to their investments. This includes disclosures about potential risks, the expected return on investment, the identity of the investors, the amount of money being invested, the investment timeline, and any fees associated with the investment. At the state level, Washington has the Private Securities Offering Disclosure Act of 2011. This act requires private equity investors to provide a written disclosure document to prospective investors. The document should include the investors’ name and background, the financial terms of the offering, the use of proceeds, the risks of the investment, and a description of any conflicts of interest. At the federal level, the U.S. Securities and Exchange Commission requires private equity investments to register with the SEC unless the securities are exempt from registration. If the investment is exempt from registration, the issuer must still provide certain information to prospective investors, including a description of the investment, a description of the securities, the risks of the investment, and certain other information. Overall, private equity investments are subject to a variety of disclosure requirements in Washington. Private equity investors should familiarize themselves with state and federal laws in order to remain compliant.

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