New rules under the Investment Advisers Act of 1940 affect investment advisers depending on status

CFTC approves proposed rule regarding exemptions from certain requirements for commodity pool operators, commodity trading advisers and commodity pools

Relying on our years of pragmatic legal and business fund manager experience and know-how across the fund manager organization enterprise, we have executed a number of viable offshore start-up private fund vehicles for clients seeking to manage fund formation start-up costs and increase the likely-hood of the investment manager's short term fund formation and long-term hedge fund or private equity fund execution success. The decision where to form a private hedge fund or private equity fund, form of fund formation structure, how to execute the fund manager strategy, the use and management of offshore providers is critical and can offset a material portion of both the short term and long term variable and/or fixed private fund manager costs across regulatory, filing fees and offshore legal fees.

Under the prior definition of a QEP, certain persons (including natural persons who are accredited investors, among others) must meet one of two thresholds or a combination of the two in a private fund.  The newly adopted Portfolio Requirement doubles the amounts of the two thresholds: The Securities Test will be set at $4 million and the Initial Margin and Premium Test will be set at $400,000.