Companies that are seeking to raise capital without going through the publicly traded exchanges can offer equity or debt to accredited private investors through a private placement memorandum (PPM).
A PPM does not have to be registered with the Securities and Exchange Commission, is a less costly method of raising capital than going public, and allows a company to have more control over who has the right of disclosure to its financial information.
A private placement memorandum can be for debt, equity, or a combination of both types of securities.