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 […]
May 19, 2015

Real Estate Fund Strategies

As is the case with investment funds in general, real estate funds are trending toward greater levels of specialization.  Specialization may be by asset class, strategy or both.  Examples of asset class-specific firms include: office, retail, medical, industrial, agricultural, storage, hospitality, etc.  Real estate fund strategies can be loosely categorized into one or more of the following groups:

April 3, 2015

Who Can Invest in a Hedge Fund?

There are two standards of investor suitability that may apply to investment fund investors, depending whether the fund manager is required to be registered as an investment adviser: the “accredited investor” standard or the significantly higher “qualified client” standard.
April 2, 2015

Hedge Fund Manager Compensation

Hedge fund manager fees typically consist of (i) an annual management fee and (ii) a performance allocation, also referred to as incentive allocation, or carried interest. The latter is not technically a “fee,” but rather a capital allocation, as will be discussed. This blog post describes the role of both compensation components.