Understand private funds
before you ever see one.

A fund of funds is a pooled vehicle that invests in other private funds rather than directly in companies or properties, giving investors exposure to several managers through one commitment. Investors typically pay fees at both levels — to the fund of funds and to each underlying fund — so it is important to read how fees are layered.

Under SEC Rule 501(a), individuals generally qualify with income over $200,000 (or $300,000 jointly with a spouse or spousal equivalent) in each of the last two years, net worth over $1 million excluding their primary residence, or by holding a Series 7, 65 or 82 license in good standing. Certain entities, trusts and family offices with more than $5 million in assets or investments also qualify, along with knowledgeable employees of a private fund for that fund.

Rule 506(b) offerings may not use general solicitation, and the issuer may rely on investors' representations of accredited status; Rule 506(c) offerings may be publicly marketed but every purchaser must be accredited and the issuer must take reasonable steps to verify that status, for example by reviewing tax returns or a professional's letter.

Fund offerings are shown only to signed-in investors who have completed an accredited-investor self-certification, because private offerings are restricted to qualified investors and many may not be marketed publicly. Public pages on this site are educational only.

No. The Hastings Fund is not a broker-dealer or investment adviser, does not recommend, endorse or rank any fund, and does not verify the information managers provide; each investor should review the offering documents with their own legal, tax and financial advisers.

Review the private placement memorandum, the subscription documents and partnership or operating agreement, audited financial statements, the fee and expense terms, lockup and redemption provisions, and how tax reporting such as Schedule K-1 is handled. Private fund investments are illiquid and you can lose all of your investment.

A fund manager creates a free manager account, submits the fund's details, the securities exemption it relies on and its offering document, and the submission is reviewed before it becomes visible to self-certified investors. The manager remains responsible for its own offering compliance, including verification for Rule 506(c).