When you invest in a new AIF, you are usually investing in a Blind Pool. This means you are committing capital without knowing exactly which companies the fund will buyÑbecause the fund manager hasn’t found them yet.
You are relying entirely on the manager’s track record and investment thesis. While this sounds scary, it is standard practice. The mitigation? Rigorous due diligence on the managerÕs past decisions. In a blind pool, trust is the currency; you are buying the manager’s ability to find the future, not a list of assets that exist today.
