Closed-end funds pool assets into a single portfolio and sell shares only through an initial offering to raise capital.
After all of these shares have been sold or the initial offering period closes, the fund is then sold on the secondary market. On average, this product takes five to six months to launch. The process can be shorter or longer depending upon the complexity and structure of the fund, establishing the trust, and review of the seed audit by the SEC. Closed-end funds are carried out by a trust company or bank partner, and are marketed and distributed to the private sector. They cannot be sold to the general public.