Blind pool


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Blind pool

A limited partnership that does not announce its intentions as to what properties will be acquired.

Blind Pool

A limited partnership without any stated investment goals. The blind pool gathers money from investors, who then trust the general partner(s) and managers of the pool to invest wisely. Blind pools have a shaky reputation as the result of some fraud scandals in the 1980s and 1990s. They are most common toward the end of a prolonged bull market, in which investors do not engage in the appropriate due diligence and risk analysis.

Legitimate blind pools usually exist for reverse acquisition. In these cases, the general partner(s) choose not to reveal their purposes for fear of scaring away potential investors, especially if the reverse acquisition is high-risk. See also: Transparency.

blind pool

An investment vehicle that raises capital from the public without telling investors how their funds will be utilized. These pools are sometimes used to acquire and convert private companies into public companies without going through a lengthy registration process. Blind pools are risky investments in which investors should pay particular attention to the background and knowledge of the promoters and officers. Shares in these investment vehicles are often sold to the public at relatively low prices.

Blind pool.

If the general partner of a limited partnership does not say which investments the partnership will make, the investment is known as a blind pool.

In a blind pool equipment leasing partnership, for example, you don't know what type of equipment the partnership is planning to acquire for leasing, and in a blind pool real estate investment trust (REIT), you don't know which properties the partnership will purchase.

When you invest in a blind pool limited partnership, your evaluation of the partnership's prospects is based on the investment track record of the general partner. In contrast, in a specified pool limited partnership, you can assess the partnership's prospects on a more concrete analysis of the costs and projected revenues.

However, there is no evidence that the average performance of blind pools differs significantly from the performance of comparable specified pool partnerships.

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References in periodicals archive ?
Apollo started working on the blind pool about a year ago, and has hired Perella Weinberg Partners LP as the placement agent, said one person with knowledge of the matter.
A number of firms that are seeking to become REITs are so-called blind pool entities, meaning they don't own assets yet.
Additionally, Mega Funding International, with Sari Rosenberg as president, is a new company which acts as mortgage brokers for projects that are either not of interest to the blind pool or are more personal residential or commercial mortgages for their international clientele.
Further, we provide our investor networks an opportunity to get more actively involved by making direct investments outside of the conventional private equity blind pool structure.
Louis investment firm Stifel Nicolaus, estimated there were about 20 blind pool REITs nationally, which were evidence of a completely new trend.
JLW and Weil Realty jointly manage the IREF, the fourth in a series of blind pool real estate programs sponsored by the bank.
The portfolio is fully developed, virtually eliminating blind pool risk, and the funds are well-diversified by manager, geography, strategy and industry.
Serving as trustee's counsel in Chapter 11 cases involving a mortgage loan originator and a blind pool fund with $180 million in Ponzi scheme-related claims.
One of the most distinguishing characteristics of a SPAC, which separates it from a traditional blind pool, is the investor safeguards.
2 billion of such loans and commitments on a blind pool basis and pursuant to an eligibility and diversity program.
The Trust is currently authorised to purchase up to US$ 500 million of such loans on a blind pool basis.
SDC's fund is not a blind pool as the companies have all been pre-selected so investors can see exactly what SDC is going to own.