An investment fund may have conflict of interests with the target company but even before making any investment an investment fund may have conflict of interests among its partners or members from the time of the inception.
Certain conflicts of interests are defined and prohibited by the applicable laws or articles of incorporation or bylaws of investment firms but you need to keep in mind that conflicts of interests not defined in the rules and regulations does not mean that the conflicts are allowed. If certain transaction may create conflict of interest then the party responsible for may face consequences.
EHoo can review circumstances that may create conflict of interests and advise clients on how to enter into transactions that are lawful and appropriate. Thoroughly review of any transactions for possible conflict of interests is a fiduciary duty and good stewardship of any fund manager.