What is the purpose of a feeder fund?

What is the purpose of a feeder fund?

A feeder fund is one of many smaller investment funds that pool investor money, which is then aggregated under a single centralized master fund. Consolidation of feeder funds into a master fund allows for reductions of operation and trading costs, and a larger portfolio has the added benefit of economies of scale.

What is a parallel investment?

A: Parallel funds are those which co-invest and divest alongside the main fund. They co-invest and divest at the same time and on similar terms. This is on a pro-rata basis per their commitments, so a manager has two funds side by side which invest and divest at the same time in a common portfolio of assets.

What is a parallel investment vehicle?

Parallel investment vehicles are generally formed to invest in and divest from the same investments at the same time as the main fund. By using a parallel structure, excused investors, depending on their specific requirements, would be segregated from the fund’s other investors.

Which of the following is master fund?

A master fund is a collective pool of assets used in a master-feeder investment structure, which offers the benefit of reduced operating costs and trading expenses.

What is a parallel fund private equity?

Parallel Fund is a Fund investment vehicle generally established to make the same investments and dispositions of assets at the same time as the main Fund to which it is related.

What is co investment private equity?

Broadly, a co-investment is an investment in a specific transaction made by limited partners (LPs) of a main private equity (PE) fund alongside, but not through, such main PE fund. This is often accomplished through a separately structured co-investment vehicle which is governed by a separate set of agreements.

What is a master feeder structure in a hedge fund?

A master-feeder structure is a device commonly used by hedge funds to pool taxable and tax-exempt capital raised from investors in the United States and overseas into a master fund. Separate investment vehicles, otherwise known as feeders, are established for each group of investors.

What is MSA in private equity?

MSA Capital is a global venture capital and private equity firm that invests in technology-enabled companies from seed to growth stage.

Is investing in gold a good idea in 2021?

Agarwal said that time and again, gold has proven to be a hedge against inflation and market uncertainty. “Moreover, it is the most liquid asset and is something that can be passed across generations. Investing in gold is hassle-free and involves minimum to no risk when compared to other options like debt, equity etc.”

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