This special report identifies the foundations needed to bolster a start-up hedge fund on its road to success. Industry experts give their views on everything from infrastructure considerations to assistance provided by independent providers…
The 'European Hedge Fund Startup Guide 2020' special report comprises five separate articles listed below, these can be read individually or as a sequence.
By A Paris – The European hedge fund industry ended the year with USD486 billion in assets under management. The largest portion of these funds were domiciled in the Cayman Islands. Luxembourg was the next most prevalent jurisdiction, which highlights one of the key decisions start-up hedge funds need to make ahead of launch – that of domiciliation.
Hedge funds looking to launch in Europe should be selective in their infrastructure investment, identify credible target client groups and understand the importance of concise marketing material which clearly outlines their unique selling point.
Emerging hedge funds risk getting lost in the melee as large investment banks streamline their service offerings. Banks are tightening their fees and raising restrictions on clients which is leading to smaller and start-up hedge funds being left in the lurch.
In the current challenging capital raising environment, emerging hedge funds need to juggle a number of priorities, including having a clear business plan and building a strong track record. But a key element in determining a start-up hedge fund’s fate is keeping a close eye on expenses.
By Ben Watford, Eversheds Sutherland – Selecting the fund domicile which best suits an emerging hedge fund strategy is one of the key decisions facing investment managers ahead of launch. The choice they make at the outset will have far reaching regulatory and tax consequences throughout the life of the fund.