Raising investment funds is a serious matter requiring accurate accounting on an investor-by-investor basis, monitoring investor qualification and complying with applicable governmental regulations and reporting requirements. Comerica Bank’s Special Corporate Financial Services Division (SCFS) has been efficiently and successfully providing useful, supporting financial services for investment broker-dealers, the private placement community, and venture capital fundraising for over a decade. Our services include a number of specialized activities and roles that facilitate both the operational and marketing elements involved with this industry.

Unifying Escrow or Subscription Document

Based on the terms of the underlying offering memorandum, SCFS will create a new separate subscription escrow agreement that clearly spells out what must be accomplished in order for offering funds tendered for investment to move forward to the offering issuer. All of the parties will sign the escrow agreement whether as principal or as subscriber investor. By design, the escrow agreement is a simple, clear and concise document that focuses strictly on what must occur before, during and after the funds are deposited with SCFS by the investor.

Investor Funds Receiving, Investment and Tracking

While each situation may vary to some degree, generally, SCFS will receive investor funds directly from each subscribing investor and account for those funds by means of an investor sub-account. Those funds are invested as directed in the escrow agreement. Required tax information is obtained so that tax reporting may be accomplished as it pertains to interest earned on the investor funds deposited with SCFS. Investor funds are held by SCFS until SCFS has received notice that the conditions required in the offering memorandum have been met, and then and only then will those funds be remitted to the issuer.

Comerica Handles the 1099 Generation and Distribution

The appropriate tax reporting requirements are met on an accurate, timely basis. Because of the escrow methodology used, the funds deposited into escrow are held until the offering escrow closes and the interest earned thereon is known. Because of this important feature, actual tax reporting and tax liability involved may span many tax reporting periods before tax reporting can take place.

Investment Funds and FDIC Insured Deposits

Due to the method under which the accounts are held, each investor may be insured up to the maximum covered by FDIC insurance as a beneficiary. Consequently, it is possible for all of the funds received by SCFS under an offering to be insured by the FDIC.

Multiple Impound Break Dates

  • Depending on the terms of the underlying offering, SCFS can accommodate multiple disbursements of raised funds as provided in the offering memorandum.
  • If permitted by the offering memorandum, SCFS may accept trailing investments into the fund after the initial offering closing date.
  • All investors, regardless of type (individual/trust/entity), will be required to provide identification as required by law and Comerica's customer identification program. No funds will be accepted prior to performing our due diligence on each potential investor.

If your needs include a qualified, independent intermediary, please remember to call on Comerica Bank’s Special Corporate Financial Services Division. Our experienced team of professional escrow officers and bankers is ready to demonstrate our capabilities and will do our utmost to satisfy your demands.