Syndications vs. Joint Ventures
Please tell me if I'm right about this.
A Syndication is when you have investors that are silent partners in the deal. They are receiving a return solely off the knowledge and work of the general sponsor. Because of this, it is an investment contract (due to investors receiving equity in exchange for capital) that needs to be registered with the U.S. Securities Exchange Commission.
A joint venture is not entirely passive because the investors who put up funds must have an active part in the deal. The private investor and the investor that found the deal are working together to get the deal done. This is all spelled out in a JV agreement. Because of this, the group is not required to register the investment with the SEC.
Am I missing any thing, is this accurate? Your thoughts