Hedge Fund Formation & Operation
A hedge fund is private investment structure that uses advanced investment strategies to maximize the return on investment for its investors. We are experienced in structuring domestic, foreign and master/feeder hedge funds, including the preparation of offering documents, operating agreements, investment management and administration agreements and side letters. Investment strategies may include long/short equity funds, convertible arbitrage funds, emerging markets funds, fixed-income funds, vulture funds, distressed securities funds, industry/sector targeted funds, marketing timing funds, event driven funds and fund of funds. In addition, we have relationships with administrators, prime brokers, custodians and accountants that have significant experience working with hedge funds.
Hedge funds are a generally open to a limited range of professional or wealthy investors. The structure provides them with an exemption in many jurisdictions from regulations governing derivative contracts, short selling, fee structures, etc. and it is critical in the structuring phase to have experts assisting in a hedge fund’s formation. We assist clients in identifying and choosing the most appropriate hedge fund structure for their investors in a jurisdiction offers a beneficial taxation structure.
As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law by President Barack Obama on July 21, 2010, practically all hedge fund investment advisers are required to register as an investment adviser, either with the Securities and Exchange Commission or the states in which the adviser operates. We assist investment advisers in the registration process and their reporting and filing obligations under applicable federal and state regulations.