What is a private fund?

A private fund (private collective investment vehicle) is a fund that issues its collective investment securities only by private placement; under the FSCMA, it is a collective investment vehicle with a total of 100 or fewer investors.

Since October 2021, private funds have been divided into institutional-only private funds, in which only institutional investors and similar investors may invest, and all other funds, which are general private funds. Regulation is lighter than for public funds, but in return only investors capable of bearing the risk may invest.