Historically, hedge funds have been prohibited from conducting any public offering by Rule 502(c) of Regulation D, which prohibited all forms of general solicitation and advertising. However, the JOBS Act is changing this long-standing regime to allow hedge funds to advertise via media which have traditionally been unavailable to hedge fund managers. Within the scope of the existing Regulation D rules, hedge fund managers can still maintain a web presence that has a public portion and a password-protected portion. Specific information about any hedge funds must be maintained behind password protection and access to the password-protected content must be limited to pre-screened investors whom the manager has determined to be “qualified.” A hedge fund manager’s website must not allow visitors to “self-certify” as “accredited investors” in order to gain access to the password-protected content.
Does a hedge fund need to register with any regulator?
Hedge fund managers are often regulated by the state in which the hedge fund manager conducts business or by the SEC, depending on the manager’s assets under management (known as…
What documents do I need to start a hedge fund?
Most hedge funds raise money through a private offering exemption under Regulation D of the Securities Act of 1933. Although Reg. D prohibits general advertising, fund managers do distribute certain…
Can another hedge fund invest in my 3(c)(1) fund?
For a 3(c)(1) fund (or a 3(c)(7) fund) to invest in another 3(c)(1) fund and only be counted as 1 owner for the purposes of the 100 beneficial owner limitation,…