UMB Fund Services, JD Clark & Company, and Registered Fund Solutions, LLC, have announced the development of the first turnkey solution in the marketplace for launching and servicing registered hedge funds and funds of funds.
The program, sponsored by Registered Fund Solutions, LLC, features a team of best-of-breed professional services firms collaborating to provide a full spectrum of services for registered hedge funds.
The practice of registering hedge funds with the SEC is gaining popularity as a means of broadening distribution, due to these advantages:
Ability to accept an unlimited number of accredited investors, thereby allowing the manager to reduce the fund’s minimum investment requirement
Provides independent board governance and increases fund transparency to investors, platforms and intermediaries
Easier access to fund distribution platforms and intermediaries, bringing greater visibility and access to investors
The program, Registered Fund Solutions, offers key benefits for money managers wanting to launch a registered hedge fund, including:
Gathers a team of top-tier firms to provide fund services, eliminating the difficulty of selecting and coordinating service providers
Reduces fund start-up costs and overhead expenses
Provides assistance in establishing and supporting the fund’s board of managers
Lonnie Macdonald (pictured), executive vice president of business development for UMB Fund Services, says: “Many hedge fund managers would like to offer a product that, while not a mutual fund, will allow them to keep their normal fee structures and liquidity provisions in place while also affording them broader distribution through RIA platforms, large broker-dealers, and other channels. As the marketplace has driven a need for registered hedge funds, UMB Fund Services and Registered Fund Solutions, LLC, have innovated a one-of-a-kind, cost-effective, turnkey program to launch and service these closed-end products.”
Vic Fontana, president of Registered Fund Solutions, LLC, adds: “By bringing to the marketplace a turnkey solution that makes it much easier to start a registered hedge fund, we will enable many great managers to move their strategies into the world of financial advisors – without having to go through all the hassles that normally come with creating a registered product.”