Private Funds

Diversifying portfolios beyond public markets

What Is a Private Fund?

Private funds offer a limited number of investors (high-net-worth individuals and institutions) the opportunity to invest in assets that are not available via more traditional publicly traded funds, such as private companies, real assets, or credit.


Private funds are not listed on public exchanges. These funds give the investment manager greater flexibility in the types of investments that can be made to seek higher returns but are vehicles that can restrict access to capital for years. In addition, these funds are typically less regulated than public funds (they are subject to certain key regulations) and have certain risks, such as the lack of transparency and regulatory oversight.


Private funds have high minimum investment amounts and deploy capital over a specified time frame, after which the fund often divests its assets through initial public offerings, mergers or private sales.


1Diversification does not ensure a profit or protect against loss.