As LP in a syndication, do you get the PPM reviewed by a lawyer?

[Strom Lee]

Hopefully the title is sufficient for the question. When participating in a syndication as a limited partner, does one generally have the PPM reviewed by an attorney?

[Matthew Hock]

@Strom Lee, as @Andrew Hogan mentioned, if you don’t want to go through the expense of having an attorney review the documents for you, then you should certainly have someone that has participated in similarly structured deals review it with/for you. This way they can at least point out any inconsistencies with what they have seen in the past and raise any red flags.

Additionally, I would encourage you to make note of ANYTHING that you have questions about in the PPM. Any investment sponsor worth working with will take the time to go through each of your questions and explain what you’re reading and their methodology for why it’s there. I absolutely believe that this is certainly one of the due diligence items you should employ when vetting a sponsor. If they won’t take the time to make sure everything is clear before you’re in the deal, then they are very likely not going to after they have your money. This obviously doesn’t prevent lying or fraud but it’s another layer of comfort that you’re going to have prior to entering a deal.