A blind pool is a type of investment vehicle in which investors' funds are pooled together for the purpose of making acquisitions or investments in unspecified companies or assets.
Blind pools are also known as "blank check companies" because investors do not know the specific investments that their money will be used for.
The investors in a blind pool are typically promised a high return on their investment, but the risk is also high since the investments are not pre-determined. These types of pools are typically used by private equity firms, venture capital firms, or investment banks to raise capital for future acquisitions or investments.
The management of the blind pool will use the funds to pursue investment opportunities as they arise, such as buying a controlling stake in a private company, purchasing a publicly traded company or buying a portfolio of assets. Due to the high level of risk and uncertainty involved, blind pools are typically only open to accredited investors, such as institutional investors or wealthy individuals.
Blind pools can be a useful way for companies or investors to raise capital for future investments, but the lack of transparency and the high level of risk make them less attractive for small investors.