# Private investment funds `kaal:entity:private-investment-funds` **Status.** derived This node is assembled mechanically from the 11 claims that carry the concept tag `private-investment-funds`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 11 claims across 4 works, 2017 to 2019. **2017** - [3002908-019](https://wulfkaal.github.io/claims/3002908-019) [mechanism/argued] *(failure mode)* -- Private investment funds entered the blockchain sector earlier than other financial players, yet because of legacy systems in private fund infrastructure the proportion of funds investing in blockchain is still small. > Private investment funds have invested earlier in the blockchain sector than other financial players. Because of legacy systems in the private investment fund infrastructure, the proportion of private investment funds that invest in blockchain technology is still small Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-020](https://wulfkaal.github.io/claims/3002908-020) [mechanism/argued] -- By optimizing internal processes through blockchain technology, smaller investment fund managers gain unprecedented opportunities to compete with more established managers in markets previously dominated by larger players. > By optimizing their internal processes via blockchain technology, smaller investment fund managers gain unprecedented opportunities to compete with more established fund managers in markets that were previously dominated by larger players. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-021](https://wulfkaal.github.io/claims/3002908-021) [empirical/asserted] -- Consistent with market fragmentation and disintermediation, smaller private investment fund managers have begun to erode the power of established market institutions such as banks and insurance companies. > Moreover, consistenly with the general trends of market fragmentation and disintermediation, smaller private investment fund managers started to erode the power of established market institutions such as banks and insurance companies. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-022](https://wulfkaal.github.io/claims/3002908-022) [mechanism/argued] -- Post crisis regulation that restrained bank lending, particularly to SMEs, opened a new market that private investment funds moved into, accelerating their involvement in banking functions. > After the crisis, newly issued regulation restrained banks from lending, in particular to SMEs. This opened up a new market for private investment funds that stepped into the void left by the new regulatory regime. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-023](https://wulfkaal.github.io/claims/3002908-023) [mechanism/argued] -- Private investment funds that are first movers in implementing blockchain infrastructure in finance directly contribute to disintermediation and accelerate the evolution of blockchain infrastructure in finance. > Private investment funds that are first movers in the implementation of the blockchain infrastructure systems in finance directly contribute to that disintermediation and facilitate the accelerating evolution of the blockchain infrastructure in finance. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 - [3002908-036](https://wulfkaal.github.io/claims/3002908-036) [condition/argued] -- Whether private investment funds succeed in disintermediating banks through blockchain implementation depends on their ability to find scale opportunities. > Private investment funds' bank disintermediation through the implementation of blockchain technology will depend on their ability to find scale opportunities. Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908 **2019** - [3405660-014](https://wulfkaal.github.io/claims/3405660-014) [failure/argued] *(failure mode)* -- Additional direct limitations on hedge funds spill over onto other private investment pools such as venture capital funds and structured financings, which do not present the same systemic risk concerns. > The imposition of additional limitations on hedge funds can impose unwarranted burdens on other types of private investment pools, such as venture capital funds and structured financings that do not raise the same concerns as hedge funds in terms of systemic risk. Kaal, Indirect Regulation of Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3405660 - [3409548-011](https://wulfkaal.github.io/claims/3409548-011) [empirical/asserted] -- Blockchain adoption by private investment funds followed a staged path: minimal use from 2000 to 2012, then experimentation through separate new fund entities beginning in 2012, and from 2015 the creation of blockchain substructures inside existing funds. > They began to experiment with the technology by setting up separate and new fund entities that utilized the technology in various forms. In 2015, however, existing funds also started to create substructures that utilized blockchain technology. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3409548-033](https://wulfkaal.github.io/claims/3409548-033) [mechanism/argued] -- The legacy private investment fund model delays liquidity: the investment process is long, complex and time intensive and leads up to a very late liquidity event in the form of an IPO or acquisition, which is why funds seek the early liquidity cryptocurrencies provide. > In the existing legacy business for private investment funds, the investment process is subject to long, complex, and time intensive processes leading up to a very late liquidity event in the form of an IPO or acquisition. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3409548-040](https://wulfkaal.github.io/claims/3409548-040) [normative/asserted] -- Continued evolution and blockchain integration in the private investment fund industry depends on regulatory guidance, which the author identifies as essential rather than optional. > Regulatory guidance will be essential to ensuring the continuing evolution and blockchain integration for the private investment fund industry. Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548 - [3411110-029](https://wulfkaal.github.io/claims/3411110-029) [mechanism/argued] -- The SEC's reasoning against the Bitcoin ETF does not transfer to blockchain based private investment funds such as those built on Melonport, because such funds trade a diverse array of cryptocurrencies and reach a much more limited and accredited audience, which curtails investor risk. > Moreover, the audience of a Melonport-type fund is much more limited and curtails the risk to investors. Wulf A. Kaal, Samuel Evans, Blockchain-Based Securities Offerings (2019). SSRN: https://ssrn.com/abstract=3411110 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/private-investment-funds.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.