First-time traditional searchers: finalizing the PPM before outreach
Hi all, I am launching a traditional search fund, based in Dallas-Fort Worth targeting Texas businesses. I'd appreciate advice from searchers and investors who’ve been through this on two questions.
1. Finalizing the PPM and when to bring in counsel
We have a working draft of our PPM: thesis, criteria, bio, budget, step-up economics and risk factors. Our plan is to raise under Rule 506(b) from people we already know.
Questions:
Did you have a search fund attorney review or finalize your PPM and subscription documents before your first investor conversations, or did you start informal conversations first and bring in counsel once you had interest?
What did counsel cost for formation plus offering documents, and is there a search fund-specialized firm or attorney you’d recommend, especially one familiar with Delaware LLCs and Texas?
Anything in your first PPM draft that investors or counsel pushed back on that you wish you’d known earlier?
Thank you for the help!