Hedge Funds & DPPs
Private, lightly regulated vehicles: hedge funds pool accredited investors' money for flexible, often leveraged strategies with lock-up periods; direct participation programs (limited partnerships) pass income and losses straight through to investors.
Hedge funds are typically structured as private placements under Regulation D, open to accredited or qualified investors only. DPPs (real estate, oil and gas, equipment leasing) are evaluated on economic merit, not just tax benefits — and exiting either vehicle early is hard by design.