Escrow Services for Issuers, Broker Dealers, Registered Funding Portals, & Platforms
North Capital Private Securities (North Capital) provides escrow services for private offerings under Reg D, Reg A+, Reg S, and Reg CF as part of its broker dealer and investor onboarding infrastructure. Issuers, platforms, broker dealers, and funding portals use North Capital to handle the “money movement” aspect of their raise in a way that is structured to be aligned with securities regulations and investor expectations.
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Build investor trust and streamline the money flows by leveraging escrow for your private offering or M&A transaction.
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Don’t Pay Thousands for Your Next Escrow Account
North Capital focuses on offering efficient and cost-effective escrow solutions tailored to private offerings. Our service is
designed to assist issuers, broker-dealers, and intermediaries in complying with SEC Rule 15c2-4, providing a balance of
convenience and value.
Escrow Administration Fee:
$650 (for first 12 months then $300 for 12 month renewal)
Out-of-Pocket Expenses: *
Billed at cost
Check Handling:
$10 per check (incoming and outgoing)
Transactional Costs:
$10 per check (incoming and outgoing)
Wire Handling:
$25 per domestic wire (incoming and outgoing)
$45 per international wire (incoming and outgoing)
Amendment Fee:
$150 per amendment
Bad Actor Checks:
$125 per covered person**
Closing Reprocessing:
$125
*Out-Of-Pocket expenses include any custom features or additional work that the North Capital team may need to perform. These fees are uncommon and will be disclosed in such cases prior to invoicing.
**Covered persons include, but are not limited to, the issuer, directors, general partners, managing members, executive officers, 20% or greater beneficial owners, and promoters connected to the issuer.
Where Investor Funds Are Held Matters
In private offerings, reducing friction in the flow can improve investor conversion and experience. All parties in the transaction are working to establish trust, increase expediency, and ensure compliance:
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Issuers want subscriptions to move forward without operational delays.
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Broker-dealers and funding platforms need an escrow agent to comply with regulations.
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Investors want to ensure their funds are safeguarded until the deal is done
North Capital built its escrow services after experiencing friction around the funding process firsthand with other third party escrow providers.
What North Capital Delivers
North Capital facilitates escrow accounts for private offerings and M&A transactions through a third-party FDIC insured bank and offers real-time visibility into account activity.
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Core capabilities include:
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Clear timelines to support timely closes from escrow
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Real-time view into account activity
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Investor KYC and AML verification
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ACH, wire, and check processing
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E-sign documents for faster turnaround
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Integrated into technology solution and API stack
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Support for international investors (where permitted)
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Ability to accommodate min max, all or none, and other offering contingencies
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Retain and distribute commissions to regulated broker dealers, funding portals and other regulated entities
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A team of private securities professionals with deep operational knowledge
Built for Volume
North Capital’s infrastructure has supported thousands of offerings, hundreds of thousands of investor transactions, and billions in transaction volume across Reg D, Reg A+, and Reg CF workflows.
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Our solution was built to scale. We offer standardized infrastructure used every day by issuers, broker-dealers, and funding portals.
Built for Modern Transactions
Investors want a concise and streamlined investment experience. By leveraging escrow, investors experience a streamlined investment flow and can subscribe and fund their investments in one sitting.
For Issuers
Move from “interested” to “funded” without creating operational delay. Subscriptions can be accepted while required compliance checks and documentation are completed, and funds can be promptly returned if offering conditions are not met.
For Platforms & FinTech Operators
If you operate a platform supporting multiple issuers, you need consistent plumbing behind each raise. North Capital provides a repeatable workflow for onboarding, payments, escrow, and reporting without rebuilding the process each time.
For Registered Funding Portals
Funding portals must direct investors to transmit funds to a qualified third party that holds them for investors and the issuer, releasing or returning them when appropriate. North Capital serves as an escrow facilitator with integrated onboarding and payment workflows to streamline the experience.
The Onboarding Process
The escrow process is designed to be straightforward while still meeting North Capital’s regulatory and compliance obligations.
1
MEET THE TEAM
A member of our team schedules a call to understand your offering, timeline, and operational needs.
2
NORTH CAPITAL REVIEW
We review your company and the offering to identify potential red flags before proceeding. This due diligence step helps protect all parties and sets clear expectations early.
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4
ACCOUNT OPENED
Once documents are complete, the account is opened and your raise is ready to accept deposits.
3
ESCROW AGREEMENT
We send a standard form escrow agreement for electronic signature to confirm responsibilities, conditions, and release instructions.
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ONLINE ACCESS
You receive instructions to access the North Capital Portal, giving you real-time visibility into your open accounts.
Payments, Returns, and Disbursement with a Clear Audit Trail
Many situations can rise when raising capital or closing a private transaction. North Capital is prepared to handle cases such as when the offering changes, when a cancellation window applies, or when subscriptions need to be reconciled. North Capital supports common rails (ACH, wire, check) and the operational steps around returns and disbursement, so the transaction can be completed with a clear audit trail.
Frequently Asked Questions
What is an escrow agent in a private offering?
An escrow agent is the independent party that holds money in an escrow account under a written agreement and then releases or returns it when the stated conditions are satisfied. North Capital partners with FDIC insured banking providers that act as escrow agent for the escrow services that it facilitates.
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Under Reg CF, the qualified third party that holds investor money can include a registered broker-dealer that carries accounts, a bank, or an appropriately insured credit union.
Do you support Reg D, Reg A+, Reg S, and Reg CF?
North Capital facilitates escrow for offerings under Reg D, Reg A+, Reg S, and Reg CF.
How do investors fund the transaction?
North Capital supports ACH, credit card, wire, and check processing for deposits. North Capital offers a technology solution that can be leveraged for payment rails. You can learn more here.
Do you offer visibility into activity?
Yes, North Capital offers online access and a real-time view into account activity.
Can you support funding portals during the raise?
Yes. The model is designed to support funding portals and platforms that need an auditable workflow aligned to Reg CF requirements and operational reality.
Ready to Simplify and Add Structure to Your Funding Workflow?
North Capital provides the escrow infrastructure that issuers, broker dealers, and funding portals rely on every day to receive, hold, and release investor funds in a compliant and transparent way.
If you are launching a raise, we can help you put the right structure in place from the start.