Fund structure: what does an investor own?

As most investors in mutual funds know, investors do not actually own the securities in which the fund invests; rather, they own shares in the mutual fund itself.  Similarly, iSelect purchases the securities (through warrants held by iSelect) of each company selected by an investor and holds them for the benefit of the investor.  The investor’s beneficial interest, along with his or her beneficial interests in all other companies in which the investor chooses to invest, are allocated to a Delaware “series” LLC established in the individual name of each investor.  The investor owns the rights to all distributions from the series established for that investor, subject to iSelect’s management fee and carried interest in each company and any fees payable to the investor’s financial advisor, as agreed to by the investor and his or her advisor (see FEES).