Before launching a closed-end fund, managers typically gauge investor interest and seek non-binding, soft commitments from potential investors. A successful launch of an investment fund depends heavily on the manager’s ability to garner a critical mass of pre-launch soft commitments properly, that is, nonbinding expressed interest in the forthcoming fund offering.
It is not uncommon to encounter fund managers who, before engaging with legal counsel, have actively prepared and presented pitch decks, executive summaries, and in extreme cases, even websites in efforts to garner interest in the fund before launch. Most often, these include inadequate legal disclaimers, stating that the communication is not a solicitation, that the fund has yet to launch, and investors should not rely upon any information conflicting with the subsequent fund launch.
Capital Fund Law Group provides pre-launch fund managers with the needed advice and disclosure documentation to enable managers to engage with potential investors to discuss pre-launch soft commitments properly. Our pre-launch services include but are not limited to reviewing pre-launch communication and promotional material, preparing the memorandum of disclosure, and forming the investment management company. We assist prospective fund managers in setting appropriate structures and investment terms that can be critical to the success of the future fund.
EXPERIENCED LEGAL COUNSEL & FLAT-FEE SERVICES
At Capital Fund Law Group, we focus our expertise and knowledge on investment advisory services, fund formation, securities law, corporate law, and taxation. Our client-tailored flat fee will take you from start to finish, assuring no unexpected, hidden charges during the pre-launch and future formation process.
We concentrate our expertise on your specific legal needs, which may include various factors, such as structure, strategy, and terms. Our attorneys welcome an initial consultation to discuss your investment goals. During your consultation, we will detail our pre-launch services and customizable post-launch legal compliance program.
Please use the link below for an in-depth look at the importance of obtaining pre-launch soft commitment and a detailed outline of our pre-launch services.
The Importance of Obtaining Pre-Launch Soft Commitments
Schedule your complimentary consultation with one of our experienced attorneys to discuss the legal structure, regulatory requirements, timeline, and costs for our pre-launch services.
Information & Downloads
Forming & Operating a Hedge Fund | by John S. Lore, Esq.
Written by John S. Lore, Esq., managing partner and shareholder of Capital Fund Law Group, Forming & Operating a Hedge Fund is a brief guide for emerging fund managers. Click the button below to view and download the eBook on a mobile or desktop device.
This book provides a concise guide through the process of structuring, launching and raising capital for domestic and offshore hedge funds and other private investment funds. Throughout this book, we highlight pitfalls that fund sponsors should watch for and suggest best practices to safely and effectively navigate the process of forming and operating a fund.
Forming A Real Estate Fund | by John S. Lore, Esq.
This white paper discusses some of the key considerations in forming a private real estate fund, including strategy, structure, and investment terms.
Real estate securities offerings span a broad continuum of size and complexity. At the largest and most complex end of the spectrum are non-traded and traded Real Estate Investment Trusts (REITs), which are pooled investment vehicles requiring a large number of investors to satisfy regulatory and tax requirements and generally requiring a substantial asset base to justify the costs of formation and operation.
The private real estate fund strikes a balance between the two ends of the spectrum, enabling a sponsor to raise capital in a pooled fund without being constrained to do successive securities offerings on a deal-by-deal basis, and without the complexity, scale and substantial regulation of forming a REIT.
Hedge Fund Structural Considerations | by John S. Lore, Esq.
Emerging hedge fund managers face a labyrinth of regulatory and tax considerations, investor reporting requirements, and business operation issues. Managers must also balance investor relationships, capital raising, developing their investment strategies, and a myriad of other roles. Operating a hedge fund entails significant legal exposure, with substantial liability for improper disclosure. Even inadvertent mistakes can lead to substantial personal liability.
The structure of a hedge fund is dependent on a number of tax, regulatory, and financial considerations. Fund structure is also driven in large part by the fund’s strategy, such as the degree of liquidity of the portfolio investments. The fund structure should be developed based on careful and thorough analysis with the assistance of an experienced fund attorney.