Escrow services for issuers, broker-dealers, funding portals, & platforms
North Capital Private Securities provides escrow services for private offerings under Reg D, Reg A+, Reg S, and Reg CF. Leverage escrow to comply with SEA Rule 15c2-4. Build investor trust and streamline the money flows for your private offering or M&A transaction.
Where investor funds are held matters
Want subscriptions to move forward without operational delays. Move from "interested" to "funded" without interruption.
Need an escrow agent to comply with regulations. North Capital provides a repeatable workflow for every raise.
Want funds safeguarded until the deal is done. Escrowed funds are held at a third-party FDIC insured bank with real-time visibility.
Don't pay thousands for your next escrow account
| Service | Fee |
|---|---|
| Escrow Setup Fee | $650 one-time setup (accounts open 12 months or less); $300 annual renewal thereafter |
| Check Handling | $10 per check (incoming and outgoing) |
| Wire Handling: Domestic | $25 per wire (incoming and outgoing) |
| Wire Handling: International | $45 per wire (incoming and outgoing) |
| Amendment Fee | $150 per amendment |
| Escrow Break Fee | $150 after the first escrow break |
| Bad Actor Checks | $125 per covered person |
| Closing Reprocessing | $125 |
| Out-of-Pocket Expenses | Billed at cost |
Straightforward from day one
A member of our team schedules a call to understand your offering, timeline, and operational needs.
We review your company and offering for compliance purposes and to ensure the escrow account is administered appropriately.
We send a standard escrow agreement for e-signature confirming responsibilities and release instructions.
Once documents are complete, the account is opened and your raise is ready to accept deposits.
You receive access to the North Capital Portal with real-time visibility into your open accounts.
Frequently asked questions
What types of offerings require an escrow account?
When broker-dealers participate in contingency offerings, such as minimum/maximum, all-or-none, or part-or-none offerings, SEC Rule 15c2-4 generally applies and requires investor funds to be held in escrow or a segregated bank account until the offering contingency has been satisfied. This commonly applies to Reg D offerings with minimum raise requirements and Reg A offerings with funding thresholds where a broker-dealer is participating in the offering. Regulation Crowdfunding offerings separately require escrow arrangements under the Reg CF rules, regardless of whether the offering is conducted through a funding portal or broker-dealer.
How much does an escrow account cost?
North Capital charges a one-time $650 escrow setup fee for accounts expected to remain open for 12 months or less, followed by a $300 annual renewal fee thereafter. Per-transaction fees also apply, including $10 per check received or sent, $25 per domestic wire received or sent, $45 per international wire received or sent, a $150 escrow break fee after the first escrow break, and certain reprocessing fees. There are no asset-based or percentage-of-raise fees charged for the accounts.
Where are investor funds held?
Investor funds are maintained at TriState Capital Bank, an FDIC-insured third-party banking institution. North Capital facilitates the escrow services and administers the escrow accounts in connection with the offerings.
How quickly can an escrow account be opened?
Escrow accounts for Regulation D, Regulation A, and Regulation Crowdfunding offerings can typically be opened within 1 to 3 business days, though timing ultimately depends on receipt of the requested due diligence documents and execution of the escrow agreement. M&A escrow accounts are generally opened within 2 to 4 business days.
What happens to escrowed funds if an offering does not meet its requirements to close on investor funds?
If the offering minimum or another contingency specified in the escrow agreement is not satisfied by the applicable deadline, all investor funds are returned to investors in full. North Capital facilitates the return of funds via ACH, wire transfer, or check, depending on the investor’s original method of payment.
What is SEC Rule 15c2-4?
SEC Rule 15c2-4 generally requires broker-dealers participating in contingency offerings to hold investor funds in escrow with a bank or in a separate segregated bank account maintained by the broker-dealer until the offering contingency, such as a minimum raise requirement, is satisfied. The rule is intended to protect investors by preventing the misuse of subscription funds before the offering closes.
Looking for custody?
North Capital Private Securities provides custody built for private funds and alternative assets, with fast onboarding and real-time portal access.
Our team will walk you through the process and get your account open quickly.