A Blind Pool Fund is an investment fund where investors commit money without knowing the specific assets or projects in advance. The fund manager later decides where to invest.
In a Blind Pool Fund, investors rely heavily on the expertise and track record of the fund manager, as the exact investments are not disclosed at the time of committing capital.
These funds are commonly used in private equity, venture capital, and real estate investments. Investors typically commit funds upfront, and the manager deploys capital over time.
"An investor commits ₹10 lakh to a private equity fund without knowing which startups it will invest in—this is a blind pool fund."