FAQs Regarding Private Equity Firms Launching Registered Funds


Many of our private equity clients have recently asked us about the feasibility of offering their investment strategies through registered fund products. We have set forth below some of the questions that we frequently receive.

1. What types of registered funds have been launched by private equity firms?

To date, private equity firms (including KKR this past July) have launched or filed to launch registered funds that leverage off of their activities for private funds, primarily with respect to strategies involving fixed income securities.

2. What is a registered fund?

It is a fund that has been registered as an investment company under the Investment Company Act of 1940 (commonly referred to as a mutual fund). It can take two forms – open-end (the fund engages in a continuous offering of shares, and investors have a right to daily redemption at net asset value) and closed-end (the fund, with limited exceptions, engages in a one-time offering of shares, investors have no redemption rights and the shares trade on a stock exchange).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ropes & Gray LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.