Bridger PenningtonFund Launch & Investment Expert

What is a fund?

23 Jan 2025 · 0 min

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Bridger Pennington explains how investment funds work: money pools together, a manager invests it, returns get split between investors and the fund. Private equity, hedge funds, venture capital, and real estate funds mainly differ in what assets they buy.

So what's the difference between a private equity fund, a hedge fund, a venture capital fund, a real estate fund? Like, what are these? What does those terms even mean? All a fund is is a pool of money. Investors are putting money into that pool, and then fund managers like me and you, we're going to draw from that pool and we can go make investments. And whenever those investments make money, it flows back to the pool and then gets split between the investors and the fund manager. The only difference is what they invest into.