Private Funds

Private funds offer a limited number of investors (high-net-worth individuals and institutions) the opportunity to invest in assets that are not available via more traditional publicly traded funds, such as private companies, real assets or credit.

Private funds are not listed on public exchanges. While these funds give an investment manager greater flexibility in the types of investments that can be made in seeking higher returns, these vehicles can restrict access to capital for years. In addition, these funds are typically less regulated than public funds (although they are subject to certain key regulations) and have certain risks, such as a lack of transparency and regulatory oversight.

Private funds have high minimum investment requirements and deploy capital over a specified time frame, after which the fund often divests its assets through initial public offerings, mergers or private sales.