A Private Placement Memorandum (PPM) is a legal document provided to prospective investors when a company is raising capital through a private offering of securities. It discloses details about the company's operations, financials, risks, and terms of the investment so investors can make an informed decision. PPMs are commonly used in private equity and venture capital deals as they allow companies to raise funds without going through a public offering. The PPM must follow securities regulations and is an important part of the due diligence process for investors evaluating a private investment opportunity.