An optimal organizational and legal form of private equity fund functioning for qualified investors
Subject The article addresses closed-end mutual funds as the best possible organizational-legal form of private equity funds for qualified investors.Objectives The purpose of the study is to choose the optimal form of incorporation of private equity funds for qualified investors and identify its strengths and weaknesses.Methods In the study, we employ a comparative and logical-structure analysis, a systems approach, subject-object and dialectical methods.Results The optimal organizational-legal form and type of operation of private equity funds for qualified investors is a closed-end mutual fund. We analyzed the legal framework and experience in creation and operation of private equity funds and systematized the stages of fund creation. The analysis also enabled to identify advantages and disadvantages for the fund participants.Relevance The findings may be useful for management companies creating a private equity fund, for investors choosing a private equity fund for their investments based on advantages and disadvantages of this form of incorporation.