• Introduction to Private Investment Funds
  • November 21, 2017 | Author: James C. Kardon
  • Law Firm: Hahn & Hessen LLP - New York Office
  • Private investment funds, such as hedge funds and private equity funds, are popular investment vehicles for sophisticated investors and for investment managers. The principal advantages offered by these funds are that they enable investors to participate in more aggressive liquid and illiquid investment opportunities with talented investment managers, enable managers to raise capital without the cost and obligations of SEC registration, facilitate incentive compensation of investment managers, and allow for the pass through of tax treatment and other aspects of investments to investors and managers. Private investment funds may be organized as limited partnerships, limited liability companies, or offshore partnerships or corporations. This practice note will introduce private investment funds, their purpose and benefits, and describe the main types of private investment funds.