Hedge Fund Attorneys

Hedge Fund Attorneys are sought after for a number of reasons. The hedge fund arena is not only complex because of its many different categories or trading strategies, but also because it has become a highly regulated field.

One type of Fund that has become very popular, and on average provided a good return to its investors over the years, is the "PIPE Fund", which stands for Private Equity in a Public Investment. I have set up several of these funds over the years for clients and they are by far the leading funding source for microcap companies, especially those listed on the over-the-counter bulletin board. Click here for information on PIPE Fund

On one hand there are Federal regulations enacted by the U.S. Securities and Exchange Commission ("SEC") and on the other hand there are the various State regulations that need to be reviewed for compliance. Good Hedge Fund Attorneys will explain the various issues involved in forming a hedge fund to comply with both the federal and state requirements.

On the Federal regulatory level some of the issues involved are:
- Whether or not the hedge fund and manager will be exempt from registering with the SEC?
- Whether or not the manager will be setting up a domestic, offshore or master feeder fund?
- If required to register at the Federal level, is the manager aware of all the various conflicts of interest, risk factors and other disclosures that should be made in the offering memorandum to be distributed to potential investors?
- How the hedge fund manager intends to raise capital from investors is also subject to Federal regulation and needs to be carefully addressed?
- If required to register at the Federal level, does the manager have sufficient staff to handle all the regulatory requirements including, including a full-time compliance officer?

There are also state and federal issues involving who can raise money for the hedge fund and how money raising efforts should be conducted. Specific rules govern the use of financial statements by hedge funds. Word of caution, NEVER use proforma financial statements!!! Best practice is to only use audited financial statements.

Contact me, Joseph B. LaRocco, Esq., if you are considering setting up a hedge fund to find out more about the issues and process involved. I have set up domestic and offshore hedge funds for clients over the years and advised them on many regulatory, structuring and procedural matters. Hedge fund attorneys background.