Episode 63: Hedge Fund Offering Terms, Part 2: Liquidity

Today is the second in a series of Tokens of Wisdom episodes walking through the main offering terms for an open-ended fund, aka a hedge fund.

One of the first things I do with new fund clients is take them through a fund questionnaire to determine the offering terms for their new fund. This is usually a one hour conversation, at the end of which I have most of what I need to draft the fund’s offering documents. Since I know ToW listeners like it short and sweet, I’m going to break this up into a handful of different episodes.

Today’s episode discusses liquidity terms.

Key Points From This Episode:

• How do hedge fund managers think about liquidity provisions?
• What’s the tension between manager and investor?
• Common liquidity restrictions/mechanisms.
• What variables are relevant for each mechanism?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 62: Sharing the Wisdom (Salman Ali)

When I set out to do this show, my goal was to arm aspiring fund managers with the information they need to launch and operate a fund.

In the legal realm, I happen to possess a lot of that information from my day job, but there’s so much more that goes into launching and operating a fund. And wise though I may be, my area of expertise doesn’t cover it all. So I’m going to bring in some friends to share their wisdom in various other aspects of fund management.

I am honored to have Salman Ali from CBIZ on the show today to tell us all about fund audits!

Key Points From This Episode:

• What does the fund audit process entail?
• What are level 1, 2, and 3 assets? Why does it matter for an audit?
• How do auditors charge for their services?
• What does auditor independence mean?
• What kind of info does the auditor need to complete its work?
• How do auditors charge for their services?
• How to choose the right auditor for your fund?
• What’s the smartest thing a new fund manager can do?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Salman Ali - https://www.linkedin.com/in/salmanali310/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

CBIZ - https://www.cbiz.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com

Episode 61: Hedge Fund Offering Terms, Part 1: Compensation

Today is the first in a series of Tokens of Wisdom episodes walking through the main offering terms for an open-ended fund, aka a hedge fund.

One of the first things I do with new fund clients is take them through a fund questionnaire to determine the offering terms for their new fund. This is usually a one hour conversation, at the end of which I have most of what I need to draft the fund’s offering documents. Since I know ToW listeners like it short and sweet, I’m going to break this up into a handful of different episodes.

Today’s episode discusses compensation terms.

Key Points From This Episode:

• How are fund managers typically compensated?
• What’s a management fee? What’s a performance allocation?
• What variables are relevant for each?

Disclaimer:

This show is for informational purposes only. Nothing presented here constitutes legal, investment or tax advice. The guests that join us are sharing their considerable fund-related wisdom, but everything they share here is their personal opinion and for educational purposes only. On this show, they are speaking for themselves, and not for their employer or any affiliated entity.

Tokens of Wisdom is produced by Dave Rothschild, partner at Cole-Frieman & Mallon LLP headquartered in San Francisco, California. For more information, visit https://colefrieman.com/

Links Mentioned in Today’s Episode:

Dave Rothschild - https://www.linkedin.com/in/davidcrothschild/

Cole-Frieman & Mallon LLP - https://colefrieman.com/

Music by Joe Ginsberg - https://www.instagram.com/thejoeginsberg

For any questions or comments, email: tow@colefrieman.com