Since 1992, Framing Compliance as Enterprise Risk
DMA can help you with hedge fund start-up and compliance.
Hedge funds are unregistered (and therefore "private") investment funds. Depending upon the tax issues for investors, regulatory considerations or corporate preferences (which can often be esoteric in nature), hedge funds may be established as domestic limited parterships, LLCs, business trusts, or as offshore partnerships, segregated porftolio companies, corporations or trusts. Documentation includes the offering memorandum, the formation documents, such as articles of incorporation, trust deed, or partnership agreement; custody or prime brokerage agreement; adminstrative agreement; pricing agent agreement as well as other documentation.
Often, tax opinions are required and swap documentation will need to be in place before active portfolio management may begin. Hedge funds may be tailored for sale to individual high net-worth investors, institutional investors, or both. Depending upon the preference, differing exemptions from registration under the securities laws will apply. In addition, hedge funds may be established as stand-alone entities, mixed portfolio companies, or structured as master-feeder funds, and may have many or few portfolio restrictions. They may have one or many classes of units or shares, depending upon sale objectives, and they may be required to be sold through a broker-dealer or engage in a "self-offering," depending upon various considerations under the securities laws. (Often, the "self-offering" exemption is not available and the fund group will need to partner with an unaffiliated broker-dealer or establish one of its own.) For further information, please contact us using the information on the home page.