Private Funds
🔞 ALL INFORMATION CLICK HERE 👈🏻👈🏻👈🏻
Private Funds
U.S. Securities and Exchange Commission
Please enter some keywords to search
Check Out Your Investment Professional
Breadcrumb
Home
Introduction to Investing
Investment Products
Main navigation
Save and Invest
Define Your Goals
Diversify Your Investments
Figure Out Your Finances
Gauge Your Risk Tolerance
Learn About Investment Options
Pay Off Credit Cards or Other High Interest Debt
Save for a Rainy Day
Small Savings Add Up to Big Money
Understand What It Means to Invest
Expand
Invest For Your Goals
How Stock Markets Work
Public Companies
Market Participants
Types of Orders
Types of Brokerage Accounts
Stock Purchases and Sales: Long and Short
Executing an Order
Expand
Investment Products
Auction Rate Securities
Bonds or Fixed Income Products
Bonds
Corporate Bonds
High-yield Corporate Bonds
Municipal Bonds
Savings Bonds
Expand
Certificates of Deposit (CDs)
Closed End Funds
Interval Funds
Publicly Traded Business Development Companies (BDCs)
Publicly Traded Closed-End Funds
Expand
Commodities
Education Savings - 529 Plans
Insurance Products
Annuities
Indexed Annuities
Variable Annuities
Variable Life Products
Expand
International Investing
Mutual Funds and Exchange-Traded Funds (ETFs)
Alternative Mutual Funds
Leveraged Loan Funds
Exchange-Traded Funds (ETFs)
Index Funds
Money Market Funds
Mutual Funds
Smart Beta, Quant Funds and other Non- Traditional Index Funds
Target Date Funds
Expand
Options or Derivatives
Private Investment Funds
Hedge Funds
Private Equity Funds
Expand
Real Estate Investment Trusts (REITs)
Retirement Savings
401(k)
403(b) and 457(b)
IRA (Individual Retirement Accounts)
Expand
Stocks
Structured Notes with Principal Protection
Expand
What is Risk?
Role of the SEC
How to Submit Comments to the SEC
Researching the Federal Securities Laws Through the SEC Website
The Laws That Govern the Securities Industry
Expand
Glossary
Sign up for Investor Updates Enter Email Address
Site Information
SEC.gov
MyMoney.gov (link is external)
FOIA
Plain Writing
Privacy
Vulnerability Disclosure Policy
USA.gov (link is external)
Disclaimer
An official website of the United States government
The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
The site is secure.
The
https://
ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
When you invest in a private equity fund, you are investing in a fund managed by a private equity firm—the adviser . Similar to a mutual fund or hedge fund , a private equity fund is a pooled investment vehicle where the adviser pools together the money invested in the fund by all the investors and uses that money to make investments on behalf of the fund. Unlike mutual funds or hedge funds, however, private equity firms often focus on long-term investment opportunities in assets that take time to sell with an investment time horizon typically of 10 or more years.
A typical investment strategy undertaken by private equity funds is to take a controlling interest in an operating company or business—the portfolio company —and engage actively in the management and direction of the company or business in order to increase its value. Other private equity funds may specialize in making minority investments in fast-growing companies or startups.
Although a private equity fund may be advised by an adviser that is registered with the SEC, private equity funds themselves are not registered with the SEC. As a result, private equity funds are not subject to regular public disclosure requirements. Information about a private equity fund’s adviser that is registered with the SEC is available here .
A private equity fund is typically open only to accredited investors and qualified clients . Accredited investors and qualified clients include institutional investors, such as insurance companies, university endowments and pension funds, and high income and net worth individuals. The initial investment amount for a private equity investment is often very high.
Even if you are not invested in private equity funds directly, you may be indirectly invested in a private equity fund if you participate in a pension plan or own an insurance policy, for example. Pension plans and insurance companies may invest some portion of their large portfolios in private equity funds.
Because of their long-term investment horizon, an investment in a private equity fund is often illiquid and it may be necessary to hold an investment in a private equity fund for several years before any return is realized. Private equity funds typically impose limitations on investors’ ability to withdraw their investment. Investors in private equity funds should be able to wait the requisite time period before realizing their return. For an institutional investor, a private equity investment may represent only a small portion of its diversified investment portfolio.
When investing in a private equity fund, an investor usually receives offering documents detailing material information about the investment and enters into various agreements as a limited partner of the fund. These offering documents and agreements should disclose and govern the terms of the investor’s investment throughout the fund’s life, including the fees and expenses to be incurred by funds and their investors. The SEC has brought enforcement actions, for example here , involving fees and expenses that were incurred by funds and their investors without being adequately consented to or disclosed. Investors should be vigilant about the fees and expenses incurred in connection with their investment.
In addition, advisers may be managing multiple funds that are jointly invested in multiple portfolio companies. The adviser has a legal obligation to act in the best interests of each of the funds it manages and must allocate expenses among itself, its funds and the funds’ portfolio companies in accordance with this fiduciary duty. The SEC has brought several enforcement actions, for example here , related to shifting and allocation of expenses.
Private equity firms often have interests that are in conflict with the funds they manage and, by extension, the limited partners invested in the funds. Private equity firms may be managing multiple private equity funds as well as a number of portfolio companies. The funds typically pay the private equity firm for advisory services. In addition, the portfolio companies may also pay the private equity firm for services such as managing and monitoring the portfolio company. Affiliates of the private equity firm may also play a role as service providers to the funds or the portfolio companies. As fiduciaries, advisers must make full disclosure of all conflicts of interest between themselves and the funds they manage in order to get informed consent.
The SEC has brought several enforcement actions, for example here , related to an adviser’s alleged failure to disclose certain conflicts of interest to the funds it manages. Through its various relationships, including with affiliates and portfolio companies, there exists opportunity for advisers to benefit themselves at the expense of the funds they manage and their investors. It is important for an investor to be aware and alert about the conflicts that exist, or that may arise, in the course of an investment in a private equity fund.
Test your knowledge of compound interest and more!
Read our Investor Bulletin to learn about 403(b) and 457(b) retirement savings plans and how to make informed decisions when investing for retirement.
Expand your knowledge about investment opportunities in crypto assets on our spotlight page.
It’s never too early to start thinking about saving and investing. Our Director's Take article can help parents and teens learn how to start making sound financial decisions together.
Возможно, сайт временно недоступен или перегружен запросами. Подождите некоторое время и попробуйте снова.
Если вы не можете загрузить ни одну страницу – проверьте настройки соединения с Интернетом.
Если ваш компьютер или сеть защищены межсетевым экраном или прокси-сервером – убедитесь, что Firefox разрешён выход в Интернет.
Firefox не может установить соединение с сервером www.brookfield.com.
Отправка сообщений о подобных ошибках поможет Mozilla обнаружить и заблокировать вредоносные сайты
Сообщить
Попробовать снова
Отправка сообщения
Сообщение отправлено
использует защитную технологию, которая является устаревшей и уязвимой для атаки. Злоумышленник может легко выявить информацию, которая, как вы думали, находится в безопасности.
LOCATIONS
CULTURE
PRO BONO
DIVERSITY
ALUMNI
CAREERS
繁體
简体
English
Private Equity and Venture Capital Funds
Limited Partners and Institutional Investors
Partner
London
Partner
Singapore
Partner
New York
Select Location
New York
Munich
Frankfurt
Singapore
Hong Kong
Dublin
Dubai
San Francisco
Washington, D.C.
Luxembourg
London
Los Angeles
Silicon Valley
Philadelphia
Boston
About the Firm
Find a Lawyer
Culture
Pro Bono
Diversity
Careers
News
Publications
Events & Webinars
Podcasts
OnPoints
Crunched Credit Blog
Cyber Bits
DAMITT Hub
Dechert Direct
Box Portal
World Compass
World Passport
Copyright © Dechert LLP 2022
Disclaimer & Other Legal Notices
US Online Privacy Policy
Cookie Policy
Data Protection Privacy Notice
California Notice at Collection & Privacy Notice
Slavery & Human Trafficking Statement
Dechert advises private fund sponsors on all aspects of the fundraising lifecycle. Our lawyers have extensive experience of raising funds in all major fund domiciles and all private asset classes, including:
Dechert is the only law firm whose private fund formation team spans the key funds jurisdictions of London, Dublin, Luxembourg, Frankfurt, Munich, Paris, Dubai, Hong Kong and Singapore, as well as across the U.S. Our lawyers function as a single global group, collaborating across offices to advise clients on all legal, tax and regulatory aspects of a fundraise. Most senior members of our team have spent time in-house with private fund managers, bringing a deep understanding of the commercial environment in which private fundraising takes place. In addition, our presence on the ground in the key investor jurisdictions means we are ideally placed to advise o
Mature Dress
Lizzie S Naked
Dpi Overwatch