Global Definitions Database

Club Deal

Informal industry term used to describe an investment Vehicle or structure (often a fund) with generally a limited number of investors investing in a common strategy. Typically investors have more discretion and control than in a typical fund, and have veto rights over major decisions.

Composite

A composite is an aggregation of one or more portfolios into a single group that represents a particular investment objective or strategy. See www.gipsstandards.org.

Joint Venture

A Vehicle with at least two parties with a common investment objective. Control over significant investment and risk management decisions is not transferred to an external manager, but is exercised by members in the venture per the Vehicle Documentation.

Life Insurance Separate Account

Funds held by a life insurance company that is maintained separately from the insurer’s general assets. It is generally used for investing pension assets or variable annuity holdings. In the United States, the accounts are regulated by state insurance departments and may or may not be registered with the Securities and Exchange Commission. In Europe, the accounts are regulated by European Insurance and Occupational Pensions Authority (EIOPA) and regulators per country.

Pooled Trusts

A multi-investor investment Vehicle which is legally structured as a trust.

Single Account

Customized real estate investment accounts funded by one qualified investor. The manager makes investments from the account to meet the strategic and other portfolio management needs of the institutional investor. In certain jurisdictions, it can also be known as separate, segregated or single client account or mandate. The account's investment mandate can be of discretionary or non-discretionary nature.

Vehicle

The overarching term for any kind of investment structure, including funds, joint ventures, club deals and separate or single accounts.

Vehicle Documentation

The key documents, including their annexes, establishing a contractual framework of how the Vehicle will operate and the significant legal rights and obligations of the parties entering those agreements related to the Vehicle. For example, these include funds, partnerships, joint ventures or trust agreements.