Hedge fund formation

Overview

The hedge fund arena covers an increasingly broad range of funds investing in a wide variety of alternative assets.

We are able to draw on the considerable breadth of experience of our investment funds lawyers in all types of funds when considering how best to structure and document our clients' hedge funds. Central to this is acting for clients on establishing and the ongoing management of single manager hedge funds (usually as master/feeder structures established in one or more offshore jurisdictions) and fund of funds. We have also advised on a number of open-ended and closed-ended hedge funds and fund of funds listed on the Irish and London Stock Exchanges.

Our hedge fund work frequently has a significant international element, and we have established relationships with leading law firms in, among other jurisdictions, the US, Luxembourg, the Channel Islands and the Caribbean. We give clients a single point of contact and can coordinate advice across all relevant jurisdictions.

The commercial, regulatory and tax landscape of hedge funds has changed considerably over the last two years, and hedge funds and their managers are coming under increasing scrutiny within the UK and Europe. We maintain a close watch on these changes and the impact that they may have on our clients and their competitors to ensure that our clients are as prepared as possible for coming changes.

Associated with any hedge fund formation and ongoing management are the legal and regulatory obligations stemming from statutory law, the FCA rules and MiFID.

Our range of services includes advice on:

  • best execution;
  • conflicts of interest;
  • market abuse;
  • insider dealing; and
  • compliance generally.

In addition to this, a significant part of our practice involves the review, negotiation and settlement of prime brokerage and ISDA agreements and considering the role of custodians following the collapse of Lehmans and the Madoff affair.

We also assist a number of active institutional investors on their hedge fund investment programmes and regularly review and negotiate the terms of their investments. The diverse nature of the hedge funds that we encounter in this context allows us to keep a close eye on market terms for hedge funds.

Recognition

  • "The team's recent merger with boutique hedge fund law firm D Harris & Co International has given it additional capabilities to advise both investors and managers from the beginning to the end of a fund's cycle."

    Chambers UK 2013