October 12, 2016

Starting a Hedge Fund in New York–Legal Considerations

John S. Lore, Esq. | Capital Fund Law Group, PC New York is the world’s most popular jurisdiction for starting a hedge fund, as well as one of the top states for startup private equity funds, real estate funds and other […]
December 1, 2015

A Hedge Fund Attorney’s Perspective on the Process of Starting a Fund

The process for starting a hedge fund involves much more than a hedge fund attorney drafting the disclosure documents and preparing regulatory filings.  Drafting the documents is only one component of a comprehensive fund formation process.  A common mistake we see is hedge funds that are […]
November 25, 2015

Exempt Reporting Adviser Registration for Hedge Funds and Private Equity Funds

Dodd-Frank exempts from registration two types of advisers: (i) advisers to qualifying venture capital funds; and (ii) advisers solely to private funds (including hedge funds and private equity funds) and having less than $150 million of assets under management.  These […]
November 21, 2015

Qualifying a Delaware Hedge Fund in the Manager’s Home State

Since domestic hedge funds are typically formed in the state of Delaware, managers must qualify the fund to do business in the manager’s state of operation.  This is known as foreign qualifying.  Foreign qualifying simply means registering to do business […]
October 21, 2015

Starting a Hedge Fund in Texas–Legal Considerations

The state of Texas has become one of the nation’s hubs for the alternative fund industry and has produced a number of internationally recognized funds.  In recent years, Texas has made significant changes to its regulation of hedge fund managers, easing […]
April 5, 2015

Brief Survey of Common Hedge Fund Terms

As part of the hedge fund formation process, the attorney works closely with the fund sponsor to craft the terms to which the fund and its investors will be bound. When properly structured, hedge fund offering documents contain terms that adequately protect the fund sponsor and are attractive to investors.

April 5, 2015

Common Hedge Fund Strategies

Hedge fund strategies encompass a broad range of risk tolerance and investment philosophies within a wide array of  investments, including debt and equity securities, commodities, currencies, derivatives, real estate and other investment vehicles. The horizon of hedge fund investment strategies has seen unprecedented expansion in recent years.

November 6, 2013

Must a Hedge Fund Register as an Investment Advisor?

Not all hedge funds are subject to investment advisor registration. To determine whether a fund needs to register, we ask our clients the following four questions:

1.  Will the fund invest in “securities?”

2.  What will be the size of the fund?

3.  In what state is the fund management team physically located?

4. In what states will the investors be located?