Private Investment Fund

An investment company with fewer than 100 investors, no intention of making a public offering, and members whohave a significant amount of funds invested elsewhere. Under section 3C1 of the Investment Company Act of 940,private investment funds are not required to register with the SEC. These companies usually have very wealthyindividual investors who are thought to be sufficiently knowledgeable about the market so as not to require the sameoversight other investors and companies need. A hedge fund is a common example of a private investment fund. It isalso called a private investment company.