Tilden Moschetti: Direct
Investment specified pools or

blind pools, there are three
different strategies for just

what you're going to do with
that money. Now that you've

raised it, and that only needs
to be communicated in your

private placement memorandum to
your investors. So let's go

through what the three
differences are and how you make

a choice about exactly where
you're at.

The easiest to explain is a
direct investment, we are going

to raise $4 million to buy the
property at 123 Main Street, we

are going to raise $4 million to
buy business XYZ Corporation.

Very, very simple. That is what
a direct investment is. There's

two other kinds of investment
strategies though, one we call

specified pools and one we call
blind pools, a specified pool

says we are going to go forward,
and we're going to buy this kind

of asset in this kind of manner.
So it's going to be we're going

to buy 123 Main Street 456
Second Street, the one that's

around the corner from that, and
maybe the shop down on on Willow

street, I don't know. And once
that's been done, that is the

specified pool. So we're raising
all this money in order to buy

those things. Sometimes a
venture capital fund is also a

similar to a to a specified pool
where we're going to be buying

these sets of businesses or
investing into these sets of

businesses. And then we're going
to be eventually selling them or

doing make having them go
public. Now compare that to a

blind pool, a blind fool says,
hey, look, we're gonna raise

this money, and we don't know
exactly what we're gonna buy,

we're gonna buy things that look
generally like this. But if some

other opportunity comes away,
we're gonna buy that too. If it

looks, if it looks good, we'll
probably invest in it. But we're

raising just this amount of
money, we don't know what it is,

we're blind to what it is. Those
are the main differences between

them. So when it comes to making
a decision about what you're

going to do, one of the factors
and figuring out what what way

you're going what strategy your
syndication or private offering

is going to look like is
thinking about these things.

Now, certainly a blind pool
gives you a lot of freedom to

invest in whatever, but it's
also harder to raise money for.

So it is harder to go in front
of an investor and say, give me

some money, I'm gonna invested
in some things that I think you

might like, versus give me some
money, and I'm gonna buy that

thing right there. That right,
there is mine, we're going to

buy that and that's what we're
going to keep. So that one is

very simple, they can see the
asset, they know what it is. So

obviously, if there's a level of
trust that needs to be

developed, and it's much higher
when it's a blind pool, even a

specified pool takes more trust
than an individual asset,

because there's more certainty
in while it's that one thing. So

that's one of the considerations
that you'll have to make as you

put a syndication or private
equity fund together. Now you

notice I use the word fund and
syndication in the same

sentence. Let me just reiterate
why a syndication by the pure

definition of it is a group of
people coming together for a

common purpose. A fund by the
pure definition of it is a pool

of money used for a common
purpose. To me, that's sure

sounds like the same thing to
sort of two sides of the same

coin. So I use them
interchangeably. That's just the

way I like to talk. I recognize
that some people talk about

funds more as these these pools
and then a syndication more as a

direct investment. But either
way, it's people coming together

for for a common purpose, or
funds coming together for a

common purpose. That's why we do
it that way. My name is Tilden

Moschetti. I am a syndication
attorney for the Moschetti

syndication Law Group. If we can
help you put your Regulation D

offering together, be compliant
with the SEC not get in trouble

and have them knocking at your
door. should anything go wrong.

Like an investor getting upset
for whatever reason that can

happen. Please give us a call or
set up an appointment through

our website.