Step by Step Process of How Our Syndicate Works

When you become a member of the Syndicate, you're under no obligation to invest in any deals. You are only showing interest in receiving information about the deals and committing to keeping any information you receive confidential.

The Syndicate Lead invites members to participate in or pass on any given deal. The Syndicate members pool capital into a special purpose vehicle (“SPV”) that invests in a single company alongside the Syndicate Lead, on a deal by deal basis.

Here is a step by step process of how an investment is completed through the syndicate.

1. Syndicate Lead leads ongoing sourcing and evaluation of investment opportunities.

2. Syndicate Lead completes necessary due diligence and secures allocation from the target investment company.

3. Syndicate Lead sends an Investment Memo to the Syndicate.

4. Syndicate members review the materials and decide whether or not they would like to participate.

5. If a Syndicate member chooses to participate, they make a non-binding commitment to invest in the SPV.

6. Once commitments meet or exceed the allocation from the target investment, the opportunity is closed to the syndicate.

7. Shortly thereafter, those members who participated in the SPV will receive closing documents for review. 

8. Participating Syndicate members review and agree to the closing documents and wire funds. The investment is now complete.

Sounds like a lot of work? Receptive Capital provides administration services including document review, signature and investment management.

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