Offering Memorandum

In a Delaware Statutory Trusts (DSTs) and Qualified Opportunity Funds (QOFs), an Offering Memorandum (OM) is a comprehensive legal document provided to potential investors that outlines the terms, risks, and details of the investment opportunity. It serves as a disclosure document and typically includes the following key information:

1. Investment Overview: A summary of the investment opportunity, including the structure of the DST or QOF, the underlying assets, and the overall strategy.
2. Risk Factors: A detailed section highlighting the risks associated with the investment, including market risks, regulatory risks, and specific risks related to the property or assets in the trust or fund.
3. Terms of the Investment: This includes the minimum investment required, the expected returns, the distribution schedule, and any fees or expenses associated with the investment.
4. Legal Structure and Tax Considerations: Information on how the investment is structured legally, including tax implications for investors, especially relevant for 1031 exchanges in DSTs and the tax incentives associated with QOFs.
5. Management Team: Details about the sponsors or managers of the DST or QOF, including their experience, track record, and roles in managing the investment.
6. Subscription Process: Instructions on how to invest, including the process for subscribing to the investment, submitting funds, and any documentation required.
7. Exit Strategy: Information on how and when investors can expect to exit the investment, including any potential liquidity events or the projected timeline for the fund or trust’s lifecycle.

The OM is a crucial document that helps investors make informed decisions by providing a transparent view of the investment opportunity, its potential benefits, and associated risks.