b'Appendix A - Glossaryempt from the registration and regulation requirements of the Securities and Exchange Commission, under various sections of Regulation D of the Securities Act of 1933. However, a private placement offering is required under Regulation D to provide various notice filings at the federal and state level.Preferred ClassA class of investors who are given distributions by the company before other classes of investors are paid.Private Equity FundAn investment strategy that involves forming a company with investors, which invests in other peoples investment opportunities rather than di-rectly owning the object of the investment. A private equity fund typically acquires a portfolio of investment opportunities in which it has placed some of its funds. Private equity funds can take a position as a single in-vestor in a specified offering or as a joint venture partner in a specific property or company. Real Estate SyndicateA group formed to pool resources to purchase, rehabilitate, operate, and eventually sell real estate.Real Estate SecuritiesSecurities issued by a company that owns real estate, allowing the in-vestor to invest in real estate without having to buy land or buildings. This provides the investor the opportunity to invest in real estate without having to become involved with real estate management, while giving the investor limited liability. The investor owns interests in the company, but does not have direct ownership in the real estate owned by the issuers company.Registered AgentA person or legal entity that may be served any process, notice, or de-mand required or permitted by law to be served on the company.Registered Investment AdviserAn adviser or firm participating in the investment advisory business and registered with the SEC or with state securities regulatory agencies. Registered investment advisers have a fiduciary duty to their clients.161'