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Pledge Fund

Pledge Fund Definition

This is a special type of fund made up of a group of investors that are loosely committed to an investment team.  The manager of the pledge fund makes investments based on a predetermined set of parameters.  The investors in the pledge fund must approve each transaction and determine if they want to pursue the investment independently or as part of the fund.  This system does not force investors to go with the majority and allows them to decide on a case by case basis if they want to invest with the group or individually.


Additional meaning of Pledge Fund:

Pledge funds became popular after dotcom craze of the 1990s.   Some Angel investors have now started using a pledge fund format for some of their venture capital investments.


RELATED TERMS
Venture capital
RELATED CATEGORIES
Mutual Funds







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