An investment in an entity, such as a company or partnership, that controls an investment rather than directly in the underlying assets. An investment entity is an entity that does both of the following: Pools funds from an investor or investors and provides the investors with professional investment management services; and commits to its investors that its business purpose and only substantive activities are investing the funds for returns from capital appreciation, investment income, or both. An investment entity and its affiliates do not obtain or have the objective of obtaining returns or benefits from their investments that are either of the following: Other than capital appreciation and investment income; and not available to other noninvestors or are not normally attributable to ownership interests.
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