Hedge Fund Formation

Hedge Fund Formation

We advise fund managers in all aspects of fund formation, entity structuring, and the ongoing compliance requirements of both the United States and offshore jurisdictions. Our team will assist you in successfully launching your fund and navigating today’s complex regulatory landscape. We represent a vast array of funds employing a multitude of investment strategies with assets under management of between $1 million AUM up to several hundred million in AUM.

We can help:

  • Funds attract U.S. based investors with a traditional domestic fund structure or attract offshore and U.S. tax-exempt investors by establishing offshore structures, including “master” and “mini-master” feeder structures, in offshore jurisdictions.
  • Establish funds and entities in jurisdictions where investment adviser registration is required or an exemption to investment adviser registration exists.
  • Funds navigate compliance obligations, including determining whether the fund’s investment adviser needs to register as an investment adviser with the SEC or submit filings as an exempt reporting adviser at the federal and state levels.
  • You register as an investment adviser with the SEC once your fund’s collective AUM reaches more than $150 million USD.
  • Established funds modify their fund structures to accommodate offshore and tax-exempt U.S. investors or new investors via side letter agreements, or establish relationships with third party marketers, solicitors and finders that comply with securities law.
  • Advise you on your fund’s entity structure, fund manager compensation, fund liquidity provisions, fund valuation procedures, subscription requirements and much more.
  • Prepare your fund’s private placement memorandum, limited partnership agreement, subscription documents, investment advisory contract and management company operating agreements for domestic and offshore entities.

  • Communicate your fund’s investment goals and strategy descriptions in the offering documents.

  • Your fund’s investment advisory firm register with the SEC, CFTC, NFA or in any offshore jurisdiction.

  • Prepare and file SEC Form D and state “blue sky” filings for your fund.

  • Advise your fund on federal, state and offshore laws affecting hedge funds.

  • Provide you advice on capital raising rules and regulations such as the general solicitation of hedge fund investors via Rule 506(c) of Regulation D and the accredited investor verification requirements under Rule 501 of Regulation D.

  • Advise your fund on UBTI, UBIT, franchise tax, domestic tax and foreign tax matters relevant to private funds.

  • Introduce you to our network of hedge fund service providers such as fund administrators, auditors, prime brokers, and other service providers.

Request free consultation

Join our newsletter