Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance
by Kevin R. Mirabile
Legal Counsel
The choice of law firm to establish the fund and the various operating companies needed to run a hedge fund is often the earliest decision a potential hedge fund manager needs to make. Funds need a U.S.-based law firm and often an offshore firm to handle their business. Legal services tend to be regional, with clusters of high-quality, experienced law firms that can draft and execute offering documents, review service agreements, and advise on regulatory matters located in all the major hedge fund centers.
Scope of Services
A law firm provides a wide range of legal services to its hedge fund clients, including advice on legal structure and business formation (master-feeder, side-by-side, and umbrella fund structures), securities and derivatives regulatory issues, business terms, marketing arrangements, trade documentation, permanent capital solutions or exchange listing, and tax and ERISA matters.
Firm Profiles
Sidley Austin
According to the company's website, Sidley Austin has one of the premier hedge fund practices in the world. Institutional Investor's Alpha magazine ranked Sidley as the number one onshore U.S. hedge fund law firm in 2006 and 2007 and second overall in 2008 and 2009 in the Alpha Awards for hedge fund legal service providers. In the 2009 survey, Sidley placed first in the subcategories of client service and document preparation/fund formation, in each case for managers with over $1 billion under management. The Alpha Awards rankings are based on ...
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