Interests in a hedge fund are securities and, as such, the manager of a hedge fund is undertaking a securities offering when offering and selling interests in the fund to outside investors. Undertaking a securities offering without a competent attorney invites significant regulatory and litigation risk for the fund’s manager and principals. You should expect an investment law firm that assists with the formation of a hedge fund to:
- advise you as to the applicable regulatory requirements and assist with important filings
- counsel you on key structural considerations in light of current market imperatives
- provide robust disclosure and governance documents (including an offering memorandum, limited partnership or operating agreement, and subscription documentation)
- assist in developing marketing strategies and collateral materials
- provide other documentation and advice as may be necessary to launch the fund in a compliant manner