Closed-end funds have a specific term (typically 10 years with extensions) and are only open to new investors during their initial fundraising period (typically a period of between 6-18 months). A private equity fund is typically a closed-end fund, meaning it is only open to new investors while it is fundraising, once a private equity fund has its final close, it is closed to new investors. PE funds also have a finite life as they have a certain timeframe within which they have to dispose of their holdings – typically ten years plus a two-year term extension.