Your Form ADV should be consistent with your fund documents and other regulatory filings. Mismatches create confusion and regulatory risk.
The Mistake
Common mismatches include: classifying a fund as "venture capital" on Form ADV but "private equity" on Form D (or vice versa), reporting a different number of funds on Form ADV than on Form D filings, describing an investment strategy on Form ADV that does not match the LPA or PPM, and listing different control persons on Form ADV than in the management company's operating agreement.
Why It Happens
Different filings are often prepared at different times, sometimes by different people or service providers. Form D is filed at first close, Form ADV within 60 days, and fund documents are drafted earlier. If changes happen between drafting and filing, or if different providers are not coordinating, inconsistencies creep in.
The Fix
Before filing Form ADV, cross-reference it against your Form D, your fund documents (LPA/operating agreement and PPM), and your management company's operating agreement. Confirm that fund classifications, fund counts, ownership structures, and strategy descriptions are consistent across all documents and filings.
How Capital Company Helps
Capital Company prepares and files Form D, blue sky filings, and Form ADV for funds on the platform. Schedule a demo to learn more.
This article is for informational purposes only and does not constitute legal advice. Consult qualified legal counsel for advice specific to your situation.