Private Investment Fund
A type of financial investment company which meets either of these criteria:
a) it has less than 100 investors, or
b) its member investors have substantial funds invested elsewhere.
These types of funds are generally exempt from federal securities regulations and laws and are included under the label of "hedge funds". Investopedia Says:
Due to the nature of these investment companies, their member investors generally have significant personal wealth and are considered sophisticated enough to not require the same level of regulatory protection accorded to small investors by law. This designation provides added flexibility for private investment funds. Related Terms:
Aggressive Investment Strategy
Grandfathered Bond
Hedge Fund
Investment Company Act of 1940
Leverage
Retrocession
Securities and Exchange Commission - SEC |