المادة 82: Private Placement of a Private Fund and Eligibility of Investors

Article 82: Private Placement of a Private Fund and Eligibility of Investors

a. An offer of units in a private fund is a private placement where the offerees are investors under the categories of institutional and qualified clients and if the maximum amount payable per offeree (from investors of the retail clients’ category) is not more than (200) thousand Saudi Riyals or an equivalent amount

b. Upon offering units of a private fund, the cash subscriptions in the fund from retail clients must not exceed (50%) of the total cash subscriptions in the fund.

c. The Authority may, in circumstances other than those described in Paragraph (a) of this Article and upon application of a capital market institution seeking to make an offer of units in a private fund, determine that such an offer shall be treated as a private placement subject to compliance with such limitation as the Authority may impose.

d. If the units are offered in a private real estate fund, the fund must be a closed-ended investment fund.