Placement period

Under placement period or placement period is defined as the period in which a closed-end funds for the first time to investors is sold.

The placement period begins with the start of sales. The start of sales must be preceded by the approval of the sales prospectus by the Federal Financial Supervisory Authority and the placement of the required newspaper advertisement. After enough investors have joined the fund and the necessary equity capital has been raised, the fund will be closed, i.e. the sale of further fund shares will be stopped by the provider.

The length of the placement periods is very different. There are major differences between funds in the same segment and between different segments ( real estate funds , ship funds , media funds and others). In rare cases, funds were sold within a few days. With other funds, however, it took more than two years to find enough investors. The usual placement periods are between three months and one year.