What if there are multiple founders of the management company?
It is not uncommon for a hedge fund to have multiple managers who share the responsibilities of running the fund. Multiple managers may execute different strategies or may operate in different functions so that each can concentrate on their own specific skill set. Responsibilities should be divided carefully and a management agreement or the management company’s operating agreement should clearly outline what happens in situations of conflict. An operating agreement should be drafted by a licensed attorney who has experience in the investment management industry.