Fund Life Cycle

Definition ∞ The fund life cycle describes the various stages a pooled investment vehicle, particularly in the digital asset space, undergoes from its inception to its eventual dissolution. These stages typically include fund creation, capital raising, investment deployment, portfolio management, and ultimately, asset distribution and fund closure. Each phase involves distinct operational and regulatory considerations. Understanding this cycle is crucial for both fund managers and investors.
Context ∞ News often covers different phases of fund life cycles in the digital asset sector, from new fund launches targeting crypto ventures to the wind-down of older, less successful funds. Discussions frequently address regulatory requirements at each stage, especially concerning investor protection and transparency. The evolution of decentralized autonomous organizations (DAOs) presents new models for fund governance and life cycle management. Future developments may include more liquid and programmable fund structures built directly on blockchain platforms.