What is a Management Company?

Definition: A management company is an organization set up to handle a certain pool of resources owned by a given fund, normally managed by a team of experts. These companies provide many services for the fund like accounting, business valuation, market research or investment and tax advice, among others.

What Does Management Company Mean?

Companies that provide financial services and investments funds are often arranged in two parts: the company that receives and pools all funds that come from investors and another company that administrates these funds by investing them according to the nature, reach and expectations offered by the fund itself.

This company is known as the management company, a separate entity that handles the way money is allocated within the vast range of different financial securities available in the market. This company is normally formed by investment professional, accountants, economists and other business experts that provide operational services and advice for managers in charge of each fund.

The company frequently charges a fee to the fund for its services, usually in the form of a percentage of the total amount of funds being managed. In the case of U.S. based companies, these are regulated by the Investment Company Act of 1940 and they should be registered within the U.S. Securities and Exchange Commission (the SEC).


Bright Spot is a financial services firm that offers a wide variety of investment funds for individual and corporate investors. The company has a large product portfolio that includes mutual funds, ETFs, wealth management funds, among other investment alternatives. The funds are managed by Bright Spot Investment Management, a partner company that hires the best professionals to handle Bright Spot’s funds through a proprietary digital information system.

The company has a very positive reputation among the investment community since all of its funds charge the smaller management fee within the market. This is possible for Bright Spot because they have only a few physical offices and most of the investment transactions and operations are made through their web-based and mobile-based platforms.

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