Fund (Capital, Investment)
A fund is a structured vehicle designed to pool capital from multiple investors for the purpose of investing in private assets. This term encompasses various types of investment vehicles, including Special Purpose Vehicles (SPVs), venture capital funds, private equity funds, hedge funds, and others. Read more: https://www.investopedia.com/terms/i/investment-fund.asp
Fund Close (Close)
A “Close” is triggered by one of the following events: (1) the countersignature of the fund documents by the fund manager, (2) the transfer of funds to the company (i.e., when investors’ funds are wired), or (3) the signing of investment documents by the fund manager. The close is significant as it activates federal and […]
Fund Docs (Fund Documents)
Fund documents are legal agreements that define the operations of an SPV and establish the rights and responsibilities of its members. SPV documents include the Operating Agreement, Private Placement Memorandum (PPM), and Subscription Agreement. The Operating Agreement outlines the relationship between the investors and managers of the SPV. The Subscription Agreement details the terms under […]
Fund of Funds (FOF)
A fund of funds is an investment strategy where a fund invests in other funds rather than directly in stocks, bonds, or other securities.