What is a financial firm organized as a partnership of wealthy investors that engages in high-risk investments called?

A financial firm organized as a partnership of wealthy investors that engages in high-risk investments is referred to as a hedge fund. Hedge funds attract high-net-worth individuals and institutional investors who are willing to take on significant risks in pursuit of potentially high returns. They employ various strategies, including leveraged trading, derivatives, and short selling, which allows them to engage in more aggressive investment approaches compared to traditional investment vehicles.

The structure of hedge funds as private partnerships allows them greater flexibility in their investment strategies and less regulatory oversight compared to mutual funds and other investment vehicles. This unique setup is designed to appeal specifically to affluent investors looking for diversified and opportunistic investment avenues that might not be available in more conventional investment platforms.