Yes, they do this because when they offer these funds in different countries, they have different restrictions. For example, they can't offer the same fund in Europe as they do in the US. So they have to have two seperate funds, I don't know why this is so hard to understand.
May I ask a novice question? Why do they start new funds based on the same methodology. There must be an administrative or marketing reason that I am not aware of. An earlier poster eluded to this as to why not leave the fund open to investors? I am considering quadriga and am a potential investor and this is a sincere question....not a stab in the dark! Michael B.
Is this the reason for closing a fund to new investors? or does each respective fund to each country close to new investors and start new streams? Michael B.
Well, when they issue a fund, they do an offering through an investment bank for a certain amount of money, this is part of the SEC procedure. If the SEC approves the offering for lets say 500 million dollars, then that is all they can offer without having to file for another offering and go through the SEC process all over again. So once they raise 500 million, the fund is closed. See when you are a fund that is not registered, you can have unlimted capital. But when you do an offering, you cannot exceed your offering amount. It's very similiar to a private placement in a stock. You can't oversell an offering. Does this make sense?
I am talking about European funds that were closed and replaced by European funds. I don't know why this is so hard to understand.