This report outlines the challenges and opportunities fledging hedge fund managers face in the current environment. Differentiation is key, as is striking the right balance between the need to be flexible and making sound business decisions…
The 'US Hedge Fund Startup Guide 2021' special report comprises eight separate articles listed below, these can be read individually or as a sequence.
By A Paris – The shift to a virtual world means the sales cycle for emerging managers is being elongated as investors go through a deeper due diligence exercise, in lieu of face to face meetings. In this tough environment, niche players are more likely to triumph.
Offshore fund vehicles – A transparent guide to making the right choice to maximise your fund’s potential
By Philip Graham, Partner, Harneys – One of the most common scenarios we encounter is a US-based manager who initially establishes a domestic fund to attract US taxable investors. With the performance going in the right direction, the manager begins to think about US tax-exempt investors, such as charities, pension funds and university endowments, as well as investors based outside of the US, who like the track record and want to invest.
2020 was a good year for most fund managers, as the market volatility provided them the opportunity to perform. Now, as investors become more comfortable with remote manager selection, can these emerging managers continue to stand out from the crowd and maintain their strong returns in 2021 while also tapping their industry contacts to make sure they get enough face time with potential investors?
Standardisation of data platforms around a core set of technology is critical for emerging managers, as it helps ensure business and technology alignment, increased efficiency, and improved security.
Investors are pushing their hedge fund managers to deliver better returns, and to revise their terms to better align with the specific needs of investors. This is leading to changes in fund terms and more dialogue with clients. Among other things, these adaptations include an increased use of hurdle rates among emerging managers as they aim to give their investors what they want. It is also a symptom of the growing need for flexibility in the startup arena where investors, managers and service providers must find that crucial symbiosis.
The trajectory of a startup hedge fund does not solely depend on the strength of the investment strategy on offer. Several elements must come together to set managers on their journey towards a successful first capital raise which will see them grow into emerging firms.
By Ron Geffner – Investors and regulators continue to evolve, becoming more sophisticated and asking more probing questions. Now more than ever, successfully launching a hedge fund is dependent upon selecting the proper structure and complying with the ever changing federal and state regulations governing hedge funds.
By Christian Pollard - Every year Opus participates in hundreds of audits where the goal is to distribute a clean set of audited financials out to interested parties in a timely manner. Each party involved in the audit shares a common desire for the process to be completed as smoothly and as quickly as possible, with minimum stress. However, it should not be underestimated how challenging this can be. A smooth audit process requires the manager, the administrator and the auditor to synchronise and work in tandem. Issues may arise anywhere within the 23 key milestones that Opus has identified as being critical to the process.