Private Investment Club Fundraising Toolkit

A toolkit of template legal documents, for raising funds by setting up a private investment club or syndicate.

LCN Legal’s private investment club toolkit has been created to help set up a UK private limited company as a vehicle for a private investment club of up to 6 investors, without falling foul of UK financial services regulations.

Who this toolkit is suitable for

This toolkit may be suitable for you if:

  • You want to raise funds for a single or multiple projects.
  • You want to raise the funds by setting up a private investment club (also referred to as a self-managed syndicate), with up to 6 investors contributing capital and sharing in the profits proportionately.
  • You already have access to potential investors. Each of the investors must be willing to actively participate in all decision-making relating to the venture.
  • You want to ensure that you are legally compliant, and that you do not commit any criminal offences relating to financial promotions and the operation of structures such as collective investment schemes or alternative investment funds.
  • You may also want to be rewarded for your efforts in co-ordinating the investment club, introducing opportunities and providing relevant services to the club (e.g. property-related services).
  • You want to minimise legal costs by following a tried-and-tested approach.

What fees can you charge as the facilitator of a private investment club?

For some private investment clubs, the facilitators take no separate remuneration other than a proportionate share of the profits of the venture, based on the amount of capital they contribute. However, setting up and running a private investment syndicate takes a certain amount of time and effort, and you are free to agree whatever form of remuneration you feel is appropriate.

Typical fees payable to facilitators may include:

  • A finder’s fee of up to 2% for sourcing the property/project;
  • If appropriate, a mark-up on development costs;
  • If appropriate, lettings management fees; and
  • Annual fees for monitoring the syndicate, of 1% to 2% of the value of the project.

These types of fees are all provided for in the template documents included in this toolkit.

What does the private investment club fundraising toolkit include?

The toolkit includes the following template and sample documents, each of them governed by English law:

  • Structure chart and structure overview for prospective investors
  • Skeleton overview, to describe the property project
  • List of legal documents and actions
  • Shareholders agreement for the SPV
  • Articles of Association for the SPV
  • Application form for investors
  • FAQs for investors
  • Property services agreement

Executive summary guidance note on how to operate the structure

Note: The documents are provided in English in Microsoft Word format, and are governed by English law.

Telephone access to a senior lawyer to discuss your questions

Following purchase of your toolkit, you will receive a certificate entitling you to a free telephone call of up to one hour with a qualified lawyer, to discuss any questions you have on the toolkit and your particular circumstances.

How to order

To order your toolkit, email us at info@lcnlegal.com or order online below.

Buy Online | £1,950.00+VAT

Call on us for more support if you need it

Our specialists are available to give you additional support as required, at prices to be agreed. This includes:

  • Tailoring the template and sample documents to suit your particular needs
  • Assistance with the negotiation of the arrangements with investors
  • Help with the structuring of high value transactions, to as to maximise the chances of success
  • Ongoing legal advice and support
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