Marketing Fund Interests: Focus on Australia
Fund sponsors who seek to market their funds internationally — and accept subscriptions from investors in multiple jurisdictions — face a bewildering array of laws. This article describes the applicable exemptions that a fund sponsor of a closed-end, private equity real estate fund can expect to rely on in Australia.
The marketing and sale of interests in private investment funds to residents of Australia are subject to regulation under Corporations Act 2001. The Australian Securities and Investments Commission (ASIC) is responsible for the administration and enforcement of the Corporations Act and related rules and regulations.
An exemption from the disclosure requirements under the Corporations Act applies to offerings of securities and other financial products to investors resident in Australia who pay a minimum subscription price per investor of at least A$500,000 (US$461,741). For certain financial products, this capital must not consist of super