DPP Roll-UP Transactions
What is a DPP Roll-UP Transactions
From time to time one or more limited partnerships may wish to combine their operations and assets to achieve better returns and economies of scale. By combing the partnerships investors may be able to achieve better returns and realize greater liquidity for their partnership interests. These transactions are known as DPP roll up transactions. DPP roll ups usually combine two or more direct participation programs into one large DPP.
SecuritiesCE Explains DPP Roll-UP Transactions
FINRA Member firms who solicit votes from investors may receive a fee for their services so long as the fee is payable in equal installments regardless of the outcome. The fee to be received must not exceed 2 percent of the value of the securities to be received up exchange of the interests. Investors must receive full disclosure of all the related risk factors and be provided with a statement from the general partner as to its opinion regarding the fairness of the transaction. If an investment bank or investment adviser has issued a negative opinion regarding the transaction it must be disclosed to the investors. Failure to disclose a negative opinion in connection with a roll-up transaction constitutes fraud. Pass the series 24 exam with our greenlight guarantee