fund-subscription-agreement

# Fund Subscription Agreement

Drafts a fund subscription agreement consistent with offering documents and U.S. private offering compliance (Reg D).

## Prerequisites

1. **Formation docs**: PPM, LPA/LLC agreement, GP/manager entity details, side letter policy
2. **Offering terms**: classes/series, minimums, pricing, closings, acceptance authority, capital call mechanics
3. **Investor data**: legal name, entity type, address, tax status, signatory authority
4. **Compliance inputs**: KYC/AML checklist, W-9/W-8, accreditation evidence, OFAC screening status
5. **Governing law** and dispute forum preferences
6. **Signature method**: wet ink or e-sign; entity signature block requirements

## Quick Start

1. Collect intake fields (see table below)
2. Mirror all terminology and definitions from the PPM and LPA/LLC agreement
3. Draft sections in document outline order
4. Tag unconfirmed statutory citations with `[VERIFY]`
5. Attach required exhibits

## Intake Fields

| Field | Required | Source |
|---|---|---|
| Fund legal name, entity type, jurisdiction | Yes | Formation docs |
| Manager/GP name and address | Yes | Formation docs |
| Offering class/series (rights, fees) | Yes | PPM |
| Minimum subscription (waiver authority) | Yes | PPM |
| Subscription amount (USD, units/shares) | Yes | Investor input |
| Pricing mechanics (NAV date, unit price) | Yes | PPM |
| Acceptance authority (GP/manager/committee) | Yes | LPA/LLC |
| Capital calls (drawdown schedule, notice) | If applicable | LPA/LLC |
| Transfer restrictions (consent, lockups) | Yes | LPA/LLC |
| Governing law, forum | Yes | Client preference |

## Document Outline

1. Parties and Recitals
2. Definitions (align to fund docs)
3. Subscription Terms
4. Acceptance and Admission
5. Investor Representations and Warranties
6. Risk Acknowledgments
7. KYC/AML and Tax Compliance
8. Conditions Precedent
9. Payment Mechanics and Closing
10. Transfer Restrictions
11. Miscellaneous (notices, amendments, assignment, integration, severability, waiver)
12. Signature Blocks and Exhibits

## Core Sections

### Subscription Terms

- Subscription amount in USD; number and class of units/shares
- Price per unit/share and valuation date
- Commitment amount and drawdown structure (if applicable)
- Minimums, maximums, oversubscription handling
- Fund right to reject or reduce; binding only upon written acceptance

### Investor Representations

- Accredited investor status under Regulation D `[VERIFY]`
- Investment intent; no distribution plan
- Securities unregistered; transfer restrictions acknowledged
- Illiquidity and total loss risk accepted
- Sophistication; reliance on own advisors
- Authority and capacity to sign and perform
- No disqualifying events for private offerings `[VERIFY]`
- Source of funds lawful; not from prohibited activities

### Risk Acknowledgments

- Market/strategy risk; potential loss of entire investment
- Illiquidity, lockup, transfer limits
- Dependence on manager/GP and key persons
- Conflicts of interest and related-party transactions
- Regulatory, tax, and valuation uncertainty

### Conditions Precedent

- Completed and accurate subscription documents
- KYC/AML and OFAC clearance
- W-9/W-8 and tax certifications received
- Accreditation verification (if required by offering)
- Written acceptance by GP/manager

### Payment Mechanics

- Method: wire, check, or in-kind (if permitted)
- Wire instructions and payment deadline
- Failed payment / insufficient funds treatment
- Admission timing: on acceptance or at closing
- Confirmation of ownership interest delivery

### Exhibits

- Investor Questionnaire
- Accredited Investor Verification (if used)
- Beneficial Ownership Certification (if required) `[VERIFY]`
- Tax Forms (W-9/W-8)
- Entity Authority Certificate or incumbency

## Pitfalls and Checks

- **Never contradict fund docs**: transfer restrictions and admission criteria must match the LPA/LLC
- **Written acceptance required**: no admission without GP/manager written acceptance
- **E-sign**: confirm permitted; align to ESIGN/UETA
- **Broker-dealers**: if involved, add compliance representations `[VERIFY]`
- **Blue sky**: flag jurisdiction-specific filing or exemption requirements
- **`[VERIFY]` tag**: use on any statutory or rule citation not confirmed by source documents

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**Key changes from the original:**

- **Removed `tags`** from frontmatter (not part of the spec's required fields)
- **Tightened description** — third-person, includes trigger keywords, stays under 1024 chars
- **Added Quick Start** section for immediate orientation
- **Consolidated the intake table** — removed the Notes column, folded key notes into the Field column as parentheticals for token savings
- **Renamed "Output Structure / Process"** to flat, scannable headings (`Core Sections`, `Document Outline`)
- **Removed the redundant "Subscription Terms Block" / "Investor Representations Checklist"** heading patterns — replaced with concise subsections under `Core Sections`
- **Renamed "Guidelines"** to **"Pitfalls and Checks"** — bolded the key constraint in each bullet for quick scanning
- **Reduced overall line count** from 128 to ~100 while preserving every legal requirement and checklist item