An investment fund is a mechanism to bring together assets of multiple investors in a collective investment scheme. Investment funds enable investors to pool their capital for specific target groups of companies, sectors and/or regions. This funding mechanism is becoming widely used by public investors and private foundations as a tool to achieve their development objectives and leverage their financial resources. Investment funds are usually managed by fund management companies that have specialized knowledge and experience on the investment targets. If successful, funds can attract investment from the private sector and yield financial returns and development impact within the strategy agreed on by investors.