Under what circumstances is a Brochure delivery NOT required?

The delivery of a Brochure is not required for individual investors in a private fund primarily due to the nature of the investment structure and regulatory framework governing private offerings. Private funds, such as hedge funds or private equity funds, are typically offered to accredited or qualified investors, who are presumed to have a higher level of investment knowledge and financial sophistication.

These individuals are expected to conduct their own due diligence and are afforded different regulatory protections compared to retail investors. This exemption from brochure delivery recognizes that private fund investors are engaging in more complex investment arrangements and are not subject to the same disclosure requirements as conventional investment clients. The intention behind this regulatory approach is to facilitate investment in private funds while ensuring that those who invest have the capability to evaluate the risks and benefits without the more standardized disclosures required in other contexts.

In contrast, other options involve scenarios where a Brochure or relevant disclosure materials are typically mandated to protect investors and ensure transparency in investment advisory services.