Private Funds

Private funds are typically open-ended, which allows investors to deposit or withdrawal funds in accordance with subscription agreements. An investor’s holdings are calculated as his or her share of the fund’s Net Asset Value. This means that the value of the investor’s holdings raises and lowers in proportion with the overall gains and losses of the fund. Typically fund managers deposit their own capital into their account. Fund managers then receive a base management fee and an additional percentage of capital gains achieved by the fund. Private funds comprise an important part of global financial holdings. As of 2009, private funds represented 1.1% of the total funds and assets held by financial institutions. As of December 2013, the estimated size of the global private fund industry was $2.6 trillion. FNEX offers a variety of private funds including hedge funds, private equity funds and real estate funds.