Fact sensitive depending on the structure set-up, strategy, amount of assets under management, domicile, to name a few. A pragmatic business approach seeks to ensure a viable and sustainable private fund manager organization to take advantage of a each client's particular facts and circumstances. Properly managing state or federal adviser registration or firm build out as needed with our expert guidance and support can materially mitigate the fixed costs to create viable economics.

Delaware, and a limited number of others states as well as certain offshore jurisdictions offer a structure similar to a segregated portfolio company or independent collective investment vehicle allowing for multiple strategies under one structure with the legal segregation of assets (ringfenced) to avoid cross-collateral exposure. Trading organizations with multiple strategies may find this structure appealing as well as private equity organizations; especially, if investing in multiple silo investments for a group of investors. This structure has its operational pros and cons and your strategy, short and long terms goals determine its viability for a particular strategy and offering.

A conventional offering consist of (i) a detailed and bespoke offering memorandum describing teams, people, strategy, asset class, liquidity, etc., (ii) a governing document for investors detailing, among other things, valuation, liquidity, fees, alignment of interests, lock-up if applicable, gate language if applicable, timing of investment and redemptions, class of investors, if applicable, etc., (iii) a detailed subscription agreement tailored to the material terms above and containing certain representations and warranties to protect both parties to evidence ownership interests; (iv) governing documents across investment adviser, partners, pooled investment vehicle, to name a few. Our deep expertise and experience will guide each client to create an offering portfolio that both offers the necessary safeguards and the optics to project a top tier offering. See our private fund formation video above for examples of some typical offering structures

A pre-solicitation offering structure (Incubator Fund) may be created to test a trading strategy and build a track record using "proprietary" assets before offering the pooled investment vehicle to outside investors. This structure is typically known as an Incubator Fund and a fraction of the legal cost of forming a conventional private fund offering structure for outside investors. This may be used to first test a strategy and build a track record before offering and raising assets from outside investors. A typical incubator offering framework will not include, among other things: (i) a detailed offering memorandum, (ii) governing agreement for investors; and (iii) a conventional subscription agreement to evidence ownership by third-party investors. and (iv) certain additional counter-party set-up not required of a proprietary fund. The foregoing is tabled until such time as the Firm is ready to market Fund to outside investors.

Investor seek safety of assets. To maintain and raise additional assets its important to reflect skin i the game by projecting a risk managed firm. Risk management means better managed returns for investors and can separate you from the pack. Our team is uniquely positioned with the legal and business experience of both working in-house for leading and global alternative asset management organizations as well as publicly as securities lawyers to established law firms to private fund managers, which means a deep legal and business skill set across the fund manager organization to provide pragmatic solutions across all phases of a fund manager organization from inception, build out and stability throughout its life cycle.

A gap analysis can be specific to an area of stress or a firm wide diagnostic review across the enterprise. We review existing processes and controls for investor red flags, potential gaps, regulatory risk, business risk. Then make tailored recommendations, close gaps upon request, and offer a final report which may be used as a marketing tool to project safety of assets and a better risk managed firm to allocators and proactively manage regulatory. operational or reputational risk.

We have relationships with third-parties that seek to raise assets for private fund managers across broker-dealers, placement agents and investors. Depending on strategy, track record and pedigree, we seek to place a client in the best position to succeed.

The opportunity at an initial meeting with a potential sophisticated investor to place yourself in the best position to succeed. Unless a pre-existing relationship with a seed investor, friends or family, a typical start-up fund will seek to raise initial assets with pre-existing trusted relationships such as friends and family. After year one, a manager may use it established track record to communicate its edge to outside investors. Depending on strategy, return profile of risk adjusted returns, market demand, firm framework in place (skin in the game) viable operations, assets under management, among other things,, determines the target market investor across high-net worth, family offices and/or institutional investors. To increase the likely-hood of marketing success, managers may seek to have the forgoing in place relative to AUM, teams and people before marketing.

Our knowledge, experience and relationships increases the likely-hood of success by avoiding the legal, regulatory and operational traps that can create cash burn, legal and business risk.