Fund managers today have several structure options at their disposal. From traditional private placements to crowdfunding, capital-raising strategies are more diverse than ever. Each model offers unique advantages to meet different needs for flexibility, regulation, and investor reach.

Regulation D now channels over $4.4 trillion in investor capital, while the crowdfunding sector will reach $1.27 billion by 2028. As private equity continues its steady growth at 9.7% CAGR through 2032, GPs leverage these regulatory frameworks to create ideal approaches for their investments.

Agora’s versatile platform supports the full spectrum of fund structures and regulatory frameworks, optimizing real estate fundraising and investment management regardless of your chosen approach.

Types of SEC regulations for funds

GPs have several options to structure their funds and raise capital. These include:

Regulation D

Regulation D allows GPs to raise capital through private placements. Two key options under Regulation D are Rule 506(b) and Rule 506(c):

  • Rule 506(b): You can raise unlimited capital from accredited investors, plus up to 35 non-accredited sophisticated investors. However, 506(b) prohibits general solicitation or advertising.
  • Rule 506(c): This approach lets you publicly advertise your investment, but you can only accept accredited investors. GPs using this rule must take reasonable steps to verify each investor’s accredited status.

Regulation A

Regulation A allows you to offer and sell securities to the public without a full SEC registration. It provides two tiers:

  • Tier 1: Permits offerings up to $20 million in 12 months. It requires SEC and state registration but does not require ongoing reporting.
  • Tier 2: Allows offerings up to $75 million in 12 months. It preempts state registration requirements but mandates ongoing reporting, including audited financial statements.

Regulation Crowdfunding (Reg CF)

Reg CF enables organizations to raise $5 million in 12 months from accredited and non-accredited investors. Companies must use an SEC-registered intermediary, such as a funding portal or broker-dealer, for these offerings. Reg CF imposes investment limits based on investor income and net worth to protect individual investors.

Regulation S

Regulation S provides a safe harbor for offering and selling securities outside the United States. It exempts these offshore transactions from SEC registration requirements and prohibits “directed selling efforts” in the United States. Companies using Reg S must confirm their offers and sales occur in offshore transactions to maintain the exemption.

Other relevant SEC regulations

  • Rule 506(d): This “bad actor” disqualification rule prevents individuals with certain legal or regulatory issues from participating in Rule 506 offerings. As a GP, you must perform background checks on key team members and affiliates to maintain your offering’s eligibility.
  • REIT Regulations: SEC regulations for REITs require specific income and asset tests, mandatory dividend distributions, and detailed reporting on property holdings and financial performance.
  • Form D Filing: Companies must file Form D with the SEC when selling securities under Regulation D exemptions. This Reg D form gets electronically filed within 15 days after the first sale of securities in their offering.

Agora’s support for different fund types

Agora’s platform supports all fund types and offerings. This versatility enables GPs to use a single platform for capital raising and investment management. Key features include:

Fundraising

Agora’s tools streamline your fundraising process. You can create custom data rooms and brochures based on accreditation status for targeted outreach. The platform manages prospects, handles onboarding, verifies SEC compliance, and collects appropriate accreditation documentation for your fund structure.

Investment management

Handle all aspects of investment management seamlessly from one platform. Manage investor cap-tables, automate waterfall distributions, execute capital calls, and optimize fund management. Agora’s comprehensive solution enhances your operational efficiency throughout the investment lifecycle.

Fund updates and reports

Easily create custom, personalized and branded reports for your investors. Our report builder helps you quickly provide routine investment updates using your existing data or external sources. Streamline communications and keep investors updated on all aspects of their investment portfolio with this user-friendly tool.

Investor CRM

Agora’s CRM supports investor profiles to your fund’s specific requirements. It automatically flags expiring accreditations and customizes onboarding questionnaires based on investor type.

You can sort investors by accreditation status, investment history, and communication preferences. This helps you segment your investor pool for targeted outreach across different fund models

Document management

Securely store all investor files, from accreditation certificates to tax forms. Use quick search to filter by document type, date, or investor name. Smart tagging features automatically categorize files based on your fund structure, making it easier to find key information.

Case studies

Agora’s features drive real results across the investor management lifecycle. Here’s how sponsors are benefiting:

  • Helu Capital: Tripled its equity raise in just six months after adopting Agora.
  • Manzo Freeman Development: Improved organization and communication with investors, enhancing their overall operational efficiency.
  • SDI Group: Eliminated time wasted searching for information, with both their team and investors now easily accessing needed documents.
  • Metonic Real Estate Solutions: Saw a 77% increase in investor engagement after implementing Agora’s investor management tools.
  • CAPX: Improved investor satisfaction while cutting their back-office workload by 50% with Agora’s investor portal.

Why choose Agora for fund management

Agora’s comprehensive solution for real estate investment management supports a wide range of fund types and regulatory frameworks. This flexibility allows you to adapt your strategies seamlessly within a single platform.

You’ll also benefit from Agora’s innovation and industry recognition. Recent accolades include SIIA CODiE’s Best FinTech Solution of the Year and G2’s Fastest Growing Products for 2024.

With white-glove onboarding service and a dedicated customer success manager, you’ll have the support you need to make the most of Agora’s powerful platform from day one.

Conclusion

SEC rules shape the foundation of fund structure, capital raising, and investor interactions. Agora’s platform supports GPs across various models, simplifying operations and maintaining compliance.

By adopting Agora, you’re meeting regulatory requirements while positioning your fund for growth and excellence in investor relations. Our technology supports and elevates your investment strategies, allowing you to focus on what matters most – delivering value to your investors.

Ready to transform your fund management approach? Contact us today for a personalized demo. Let’s work together to unlock your fund’s full potential.