Crystal Capital Partners, a provider of hedge fund services, has launched onshore and offshore investment vehicles.
The funds are designed to segregate the assets, liabilities, liquidity and investment terms of each customized hedge fund portfolio from other portfolios in the funds.
Crystal allows investors to build custom hedge fund portfolios based on their investment needs. Investors can create portfolios using institutional quality funds across all strategies and asset classes, and have control over their liquidity and investment terms.
Steven Brod, senior partner, says: “The financial crisis taught us that the traditional fund of funds structure does not address the needs of today’s investors. First, the concept of a pooled vehicle allowed the liability incurred by one asset to potentially affect all other assets in the pool. Second, the concept of pooled liquidity caused liquidity dilution, delays and uncertainty during times of crisis for all investors in traditional fund of funds.”
Crystal’s fund structure addresses the pooled vehicle issue by segregating the assets of each customized portfolio from the assets of other portfolios in the funds. This structure also addresses the pooled liquidity issue by allowing each investor to determine their individual investment allocation and liquidity terms based on the underlying funds they have selected.
Brod adds: “Each investor deserves to have greater knowledge over the actual investments in their portfolio. Our structure provides clients with the confidence that they have control over their investment decisions, with the added comfort of knowing that other investors in the fund cannot affect the liquidity or other terms that they have chosen for their portfolios.”
