Media Coverage
Source: InvestmentNews
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
05.15.11
Earlier this month, the Securities and Exchange Commission chairwoman announced that the SEC plans to revisit its rules concerning the ban on public marketing of private placement. The announcement closely follows Facebook’s private placement. At the same time, FINRA has been active in pursuing firms for violations in connection with private placement sales.
“The whole issue of public marketing or permitting public advertising has been a topic for some time, particularly as the Internet has opened up public channels of discussion for such deals”, said Bob Robbins, the head of Pillsbury’s corporate & securities practice. “It's harder and harder to have an offering be truly private.”
The article reports that the number of Regulation D offerings has been growing tremendously since the SEC started accepting these filings in 2009.
“Although private offerings such as Facebook and, potentially, Groupon Inc. get most of the attention, thousands of private deals fly under the public's radar,” Robbins said. “There are more private placements in the United States than any other form of capital raising [offerings,] and most get no attention at all.”