Investment Company

Investment companies are business entities, both privately and publicly owned, that manage, sell and market funds to the public. An investment company can be a corporation, partnership, business trust or limited liability company (LLC) that pools money from investors on a collective basis. The money pooled is invested, and the investors share any profits and losses incurred by the company according to each investor’s interest in the company. Investment companies are categorized into three types: closed-end funds, mutual funds (or open-end funds) and unit investment trusts (UITs). Each of these three investment companies must register under the Securities Act of 1933 and the Investment Company Act of 1940 unless they meet an exemption. SPVs typically meet an exemption so they do not need to register with the SEC. See 506(b)Offering, 506(c) Offering, 3(c)(1) exemption and 3(c)(7) exemption.