Business
Discretionary Funds
What are “Discretionary Funds”?
Unlike traditional funds, Discretionary Funds
are raised without a stated investment goal.
The funds raised from investors are invested
once profitable opportunities are secured.
The deal sourcing capability of the asset
management company is the most critical factor
in a successful Discretionary Funds,
because the specific investment target
cannot be known in advance.
Traditional funds
- 01Set investment
target - 02Launch fund
- 03Raise funds
Discretionary Funds
- 01Launch fund
- 02Raise funds
- 03Set investment
target
Advantages
-
- Fast
-
Since investment targets are not
defined before raising funds, the
asset manager has the discretion
to make immediate decisions on
where and how to invest the funds.
-
- Profitable
-
Speedy decision making enables
investment in blue-chip assets
before anyone else, leading to
higher profits compared to
traditional project funds.
-
- Stable
-
A single discretionary funds can
cover multiple assets in its portfolio,
reducing risks and ensuring stable
gains.
Discretionary
Funds
-
Fund-raising
type- Public Offering fund
- Private fund
-
Investment
type- Equity fund
- Debt fund
-
Risk Profile
Type- Core
- Core+
- Value-added
- Opportunistic
-
Sector
Type- Office
- Logistics
- Retail