Fund (Capital, Investment)
A fund is a generic term to describe a structured vehicle which has the main purpose of aggregating capital from a number of different investors in order to invest into private assets. An SPV is considered a fund, a venture capital fund is considered a fund, as is a private equity fund, hedge fund and […]
Fund Close (Close)
A “Close” is triggered upon one of the following events: (1) the fund docs are countersigned by the fund manager, (2) Funds are wired to the company (investors’ funds are used), or (3) the fund manager signs investment docs. The definition of a close is important because a close triggers the federal and state filing […]
Fund Docs (Fund Documents)
Legal documents govern how this entity (SPV) behaves, and the rights and rules of those members that belong to it. SPV documents include an Operating Agreement, Private Placement Memorandum and Subscription Agreement. Operating Agreement governs the relationship between all of the investors and managers of the SPV. Subscription Agreement covers the committing of capital to […]
Fund of Funds (FOF)
A fund of funds is an investment strategy in which a fund invests in other types of funds rather than investing directly in stocks, bonds, or other securities.