John Lore, managing partner of Capital Fund Law Group, joined Alyne on The Reg Tech Report to discuss investment strategies and the current investment ecosystem in RegTech, specifically in the U.S.
During this informative Podcast, Mr. Lore offers insights on PE and VC investment activity and strategies, from broad activity to specific tech segments, and how the compliance industry continues to grow as regulations continue to expand.
We ask hedge fund managers five main questions to determine who can invest in their fund. Many prospective fund managers mistakenly believe that the “accredited investor” standard is the only required investor accreditation standard for their investors.
Your legal counsel will prepare six core documents, which are necessary to launch the fund: (i) a private placement memorandum, (ii) a limited partnership agreement, (iii) a subscription agreement, (iv) an investment management agreement, (v) a general partner operating agreement, and (vi) a management company operating agreement.
Other services and documents that are also generally completed include the formation services of the limited partnership, the management company, and the general partner; drafting the management company operating agreement; preparing and filing the Edgar registration; drafting and filing state and federal Form D notice filings; and as necessary, preparing and filing any state or federal registrations or exemptions (or other necessary fund formation documentation).
The investor standard of investor suitability applied to an investment fund may depend on the state or federal investment adviser regulations the fund manager is bound by. The two most common investor standards for private fund advisers are the “accredited investor” standard or the significantly higher “qualified client” standard.