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Can closed-end private equity fund sell new shares?


There are 2 kinds of funds open-end and closed-end. I am wandering if a closed-end private equity fund could decide its fund is worth $1 billion, then just issue 10% new shares for 100 million. Why is it they raise 1 fund and only operate with that money they raised originally?

Typically the PPM will set out what freedom the general partner has to issue new shares. Most allow for this under certain guidelines.

the agreement (prospectus) for the fund controls.

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