Hedge Fund Template. Hedgefundtemplate.net offers downloadable sample ppm templates for company and hedge funds.
Hedge Fund Prospectus
Prospectus.com team of securities attorneys can draft your hedge fund Prospectus for virtually any jurisdiction worldwide. We are considered to be the most efficient, most cost effective (save money) and most proficient firm globally.
Our team can prepare and assist in the filing of all hedge fund offering paperwork with regulators and we can help to launch the fund. Our industry leading firm specializes in hedge fund setup and document drafting for nearly all paperwork, including the prospectus, as required. We write hedge fund Prospectus Offering documents for various onshore and offshore jurisdictions and for numerous hedge fund offerings for limited partnerships (LP or LLLP), LLCs (limited liability companies, open ended and closed ended funds, UCITS and umbrella structure and more.
Dell optiplex 160l drivers windows xp. Our hedge fund documents conform to industry best practices and are utilized by hundreds of funds and law firms.
Some of the details of our hedge fund Prospectus and offering memorandum include the following:
| * Good for LP or LLLP Hedge Fund Prospectus * Good for LLC Prospectus
* Includes Hedge Fund Subscription Agreement * Includes Hedge Fund Investor Questionnaire | * Exemption under Section 3(c)(1) of the Act
* Includes Hedge Fund Term Sheet* Industry Standard Format* Includes updated SEC Accredited Investors Rules |
Hedge Fund Definition
Hedge funds typically borrow money and reinvest the capital in both long-term and short term trading strategies, across global equities, fixed income, government securities, commodities, currencies and alternative assets (such as private equity investments). Hedge funds are normally constructed via a limited partnership structure (“LP”). Hedge funds can be domiciled onshore, such as in the United States or China, or “offshore” in Cayman Islands, BVI, Bermuda and various other jurisdictions. Investors in hedge funds represent a diverse profile and strategies deployed by such funds can be comprised of a various investment themes. Often the positioning of hedge funds utilizes leverage when taking on short or long positions in a respective asset class. Depending on the investment thesis or investment style, the dollar or Euro amount invested, profit margins can be high (and of course one can lose their entire investment).
Hedge Fund Structure
Often, hedge funds are most often set up as a limited partnership (usually referred to as a ‘private investment partnership’ or LP or LLP). As a private investment partnership, hedge funds are not permitted to have an unlimited amount of investors and therefore the offering (typically conducted via a Prospectus for a private placement or a private placement memorandum or offering memorandum for the hedge fund) will limit the number of investors. In order to offset the negative implications of having ‘few’ investors, the hedge fund’s Prospectus will state that it is only allowed to have investors buy in for a ‘large’ investment. Example: if a hedge fund’s offering memorandum is seeking $100 million in capital, they may have a one million dollar minimum buy in or higher. Additionally, investing in a hedge fund also implies that the investment is illiquid, meaning redemption of capital invested comes with restrictions. This means that one’s investment can remain in the hedge for a ‘long’ period of time, such as one year, without having the ability to redeem the amount invested.
Sophisticated Investors for a Hedge Fund Private Placement
In general, hedge funds are unregulated or lightly by securities regulatory regimes, as hedge funds cater to “sophisticated investors”. For American investors in hedge funds, it is required the any investor be “accredited” while in Europe the term referring to sophisticated investors is “experienced investors”. Accredited investors must have a certain net worth (in the United States, the net worth standard was updated in July 2010 via the Financial Overhaul Bill approved by US Congress) while sophisticated investors must have experience and knowledge of investing. In addition to an accredited investor needing to have a certain amount of net worth, they must also possess investment knowledge. Hedge funds ‘hedge’, which infers they utilize leverage and sometimes esoteric securities to maximize profit while reducing risk and doing this faster than, say, a mutual fund, which has a longer term view for investment. Therefore, investors must have knowledge of the general industry. Our team ensures that all hedge fund Prospectus that we draft encapsulates the notions of accredited, sophisticated or experienced investor criteria standards.
Prospectus.com’s team has years of writing and working with hedge funds from across the globe. We write investor- ready hedge fund Prospectus documents for funds seeking to offer an investment opportunity in the hedge fund world.
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Prospectus.com can help you create a tailored prospectus for your hedge fund, and conform to the rules and regulations in which you are domiciled.
The Prospectus.com team can draft your hedge fund prospectus (and private placement memorandum or offering memorandum) for virtually any jurisdiction worldwide. We are considered to be the most efficient, cost effective and proficient firm across the globe.
A hedge fund is an investment fund that is open to a limited number and types of investor. The hedge fund is, under law, allowed to make investments spanning a wide array of industries and products – other funds may not be allowed to do this – while paying a performance fees to its manager.
Risk and Openness
A hedge fund tries to mitigate risk and even offset possible investment losses by ‘hedging’ their investment strategies, mainly by short selling. Hedge funds are typically open to a limited number and type of investor, such as wealthy individuals or even accredited investors. These restrictions allow for an exemption in certain jurisdictions from the many regulations governing short selling, leveraging, fee structures, derivatives and the amount of liquidity in the investment fund. A hedge fund often binds itself to a certain investment outlook or strategy, including the types of investments it will allocate funds with and the fund’s leverage capacity or level. These disclosures are typically made in the hedge fund private placement offering memorandum.
Prospectus for a Hedge Fund
For issuers considering selling shares in the fund, a well-tailored prospectus is mandatory, particularly in light of the current economic conditions. A prospectus offering document provides protection to your hedge fund and it is often required to raise capital in the public and private hedge fund markets. A well written prospectus will tell the story of the company, from the minute details of the types of securities being offered, e.g. the various classes of shares or segregated portfolios, to the management team, the market, the risk factors and the overall business plan model of the company, among many other details. The final part of the prospectus is reserved for the subscription agreement, which is an essential component of any prospectus as it is the contract between the issuer and the person buying the debt or equity securities.
Offshore & Onshore Hedge Funds
Our team at Prospectus.com drafts prospectus for both offshore and onshore jurisdictions, including but not limited to: the United States, Canada, Cayman Islands, British Virgin Islands, Bahamas, Bermuda, Hong Kong, Singapore, Ireland, Gibraltar, the United Kingdom and many others.
Mutual Fund Prospectus Sample
Private Placement Memorandum for a Hedge Fund
Prospectus.com also writes hedge fund private placement memorandums (PPM) for both on shore and offshore funds.
Offering Memorandum for a Hedge Fund
Prospectus.com also writes hedge fund offering memorandums (OM) for both on shore and offshore funds
Hedge Fund Prospectus Template
Raise Capital
Although the prospectus is first and foremost a document used to raise capital, the structure and presentation of the prospectus can add value to a hedge fund’s products and services as well as the team by portraying them in a well-polished format. A prospectus shows an investor that one is serious and has gone the extra length to ensure regulatory compliance and good business practices. Without a formal document that outlines the company’s business plan and securities structure, it is often difficult to raise capital from any serious investor for a hedge fund.
Our team at Prospectus.com has years of experience writing prospectus for hundreds of various industries and businesses in the hedge fund world. We work one-on-one with our clients during the prospectus drafting process and take it upon ourselves to assist our clients with their quest for growth once our services are complete.
Prospectus.com’s team has written hedge fund prospectus and business plans for both large (over $5 billion) and small investment funds. Our team can help structure your documents to ensure regulatory adherence, attractiveness and more.
Hedge Fund Template
Capital Management Services Group
Offering Advice & Services to Traders Investors Funds
Hedge Fund Offering Documents
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PPM, OM, Prospectus Offering Documents, Private Placement Memorandum In the United States, offering documents include a private placement memorandum (PPM, OM or prospectus), a limited partner (or limited liability company) agreement, and a subscription agreement. Offering documents for an offshore hedge fund include the private placement memorandum and the subscription agreement. If the hedge fund accepts non-accredited investors, it should include a set of financial statements. If the hedge fund’s manager is registered as an investment adviser with a U.S. federal or state regulator, the offering document will included a Form ADV Part 2, which describes the investment manager in detail. Learn More About SEC or State Investment Adviser Registration
Although there are no specific disclosure requirements for offering documents, basic information about the hedge fund’s manager and the hedge fund itself typically, in fact is disclosed. The information provided is general in nature and it normally discusses in broad terms the hedge fund’s investment strategies and practices. For example, disclosures generally include the fact that the hedge fund’s manager may invest fund assets in illiquid, difficult to-value securities and that the hedge fund manager reserves the discretion to value such securities as it believes appropriate under the circumstances.
PPMs disclose any lock-up period that new investors must observe, as well as laying out the specifics for when investors will be able to redeem some or all of their investments out of the hedge fund. PPMs name service providers to the fund. PPMs may generally disclose potential conflicts of interest to investors, frequently under the heading of “Risk Factors.”
The fund's offering materials and legal documents must clearly spell out the manager's approach to charging performance and management fees and include a description of the fee schedule; the exact formula used to calculate fees owed, and where appropriate, example calculations. Hedge fund fees should be calculated based on audited portfolio valuations. Where the period of audited financial valuations does not coincide with the fee calculation period, investors should familiarize themselves with the hedge fund manager's portfolio valuation methodologies and the processes used to prepare the fee calculation. Once audited financials become available, the fee calculations should be reviewed and adjusted for any valuation differences.
Performance fees should be based on dollars of value added, not percentage returns or average capital invested for the calculation period. Performance fees computed as carried interest should be calculated on net value added as opposed to gross value added. Offering documents should adequately define 'net value added' upon which performance fees are calculated (gross value added less any other expenses charged to the hedge fund). Learn More About Hedge Fund Performance Fees
The PPM also may disclose that the adviser may exercise its discretion to invest fund assets outside the stated strategy or strategies. PPMs also discuss qualifications and procedures for a prospective investor to become a limited partner, as well as provide information about the hedge fund’s operations. PPMs discuss fund expenses, allocations of gains and losses, tax aspects of investing in the fund and may incorporate the hedge fund’s financial statements (see below for an outline of the contents of an offering document).
| Hedge Fund Offering Documents Offering Documents are the key to hedge fund sales. While there is no requirement that prospective accredited investors in a U.S. hedge fund be provided with offering documents, it is good (and common industry practice) to do so. Most hedge funds provide written information to their investors in the form of a private offering memorandum. This document—referring to both the prospectus and subscription agreement-- goes by many names and acronyms including: private placement memorandum, PPM, Offering Memorandum, OM or prospectus (“PPM”). Whatever it is called, the PPM is an extensive document individually created for each hedge fund.
Do you need a set of offering documents for your hedge fund? For a reasonable fee, we will draft customized offering documents for all types of hedge funds. Contact Us for Assistance
The disclosures in a PPM furnished to investors serve as protection to the principals against liability under the anti fraud provisions. Some of the information may be disclosed less formally in one-on-one conversations between investors and the hedge fund adviser. Hedge fund advisers may also provide information to hedge fund investors in the form of side letters, conference calls and financial statements.
In addition, some hedge fund advisers may provide prospective investors with access to their prime brokers and other service providers, such as administrators, both during the investor’s initial due diligence of the hedge fund and subsequently. Hedge fund investors must often spend significant resources, frequently hiring a consultant or a private investigation firm, to discover or verify information about the background and reputation of a hedge fund adviser. In practice, even very large and sophisticated investors often have little leverage in setting terms of their investment and accessing information about hedge funds and their advisers.
Already Have Hedge Fund Offering Documents? We review offering documents for a small fee. If you are not sure about the quality of the offering documents you prepared, we will read them and consult with you as needed to improve them. Email Us for Support
What is a Private Placement? The private placement memorandum (PPM) is a disclosure document that provides potential investors with the terms and conditions of the hedge fund. This document is similar to a business plan, except that the emphasis is on the disclosure of facts rather than projected results. A PPM includes a discussion of the terms of the offering, the allocation of proceeds, and the risk factors inherent in the business and industry. In general, the memorandum must contain all information about the fund, the investment manager, and the securities offered, as well as any other information that would be considered 'material' by a potential investor. The PPM is accompanied by a subscription agreement and investor questionnaire. The subscription agreement is a contract to purchase a specified amount of securities at an agreed price, and contains a statement that the investor has received and reviewed the PPM, is aware of the risk factors, and is a suitable investor. The investor questionnaire elicits information about the investor's background, employment and investment or business experience. It is used, in part, to confirm the investor's accreditation and sophistication. This document should be professionally prepared. Need help? Contact Us for Assistance
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Fiduciary Audits PPMs should be written with accountability in mind. Consider the PPM that states that “the goal of the fund is capital preservation.” Unless capital preservation is clearly defined in terms of asset allocation, one might expect that all of the fund’s assets consist of principal protected investments with specific maturity dates as such investment would most likely preserve capital. Given this PPMs should not state capital preservation as a goal unless the fund invests in items that return the principal investment. When used in a PPM, the terms “capital preservation,” “liquidity and marketability,” “risk aversion” need to be defined (and adhered to by the hedge fund manager) with a future audit in mind. In the future, there may be a trend toward investment policy audits (at the top levels of the hedge fund industry).
An investment policy audit evaluates whether the hedge fund manager is in compliance with the statements made in the investment policy and investment strategy section of the PPM. An asset allocation audit examines whether the fund’s portfolio is within the range of a PPMs stated asset allocations percentages. Contact Us for Assistance
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Private Placement Memorandum (PPM) Checklist
Description of Interests
Investment Objective and Strategy
Fees and Expenses
IMPORTANT GENERAL CONSIDERATIONS
SUMMARY OF OFFERING AND PARTNERSHIP TERMS MANAGEMENT
Role of the General Partner and the Investment Manager
Background of Management
Other Activities of General Partner, Investment Manager and Affiliates
Investments by General Partner and Affiliates
INVESTMENT PROGRAM
Purpose Features of the Partnership’s Trading Strategy
BROKERAGE PRACTICES
Brokerage Arrangements
Soft Dollar Arrangements
Referral of Investors
Broker and Custodian
RISK FACTORS AND CONFLICTS OF INTEREST
Partnership Risks
Market Risks
Regulatory Risks
Conflicts of Interest
ERISA CONSIDERATIONS
General Fiduciary Matters
Plan Assets
Plan Asset Consequences
TAXATION
Introduction
Classification of the Partnership
Taxation of Partnership Operations
Tax-Exempt Investors
Other Taxes
Tax Elections; Returns; Tax Audits
Other Matters
Special Considerations for Limited Partners who are not U.S. Citizens or Residents
State Taxation
Future Tax Legislation
Collection of Investor Information
Disclosure of Nonpublic Personal Information
Protection of Investor Information
Changes to Privacy Policy
EXHIBITS
A - Limited Partnership Agreement
B - Subscription Documents
C - Form ADV Part II of the General Partner
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Capital Management Services Group, Inc. is recognized by discriminating business owners as being the foremost tax and legal authority in the hedge fund industry. Attorney Hannah Terhune's education and experience are unsurpassed in the area of hedge fund creation, development and launch. Ms. Terhune's extensive international tax knowledge and hedge fund experience have made her an indispensable resource for serious hedge fund and business professionals. Ms. Terhune's numerous articles on the subjects have appeared in over 100 publications worldwide. Chances are, if you have read anything related to the hedge fund business, Ms. Terhune wrote it.
Why Hire Us? When you engage us you get a unique combination of securities, tax, and global business experience. We think we have the best set of offering documents in the industry for hedge funds based on current and ever changing laws. We aim to deliver quick turnaround times because we understand that our customers want to begin their money management business as soon as possible. We conceive, structure and deploy the best tax saving strategies for your hedge fund business. We will help you start your business as soon as possible and continue to assist you.
Give us the opportunity to use that knowledge and experience for you. Each client receives personalized attention from our attorneys and staff. No client is too large or small for us. We pride ourselves in providing personal attention to each client. We provide the best services and support needed for hedge funds and business projects. No need to coordinate work between accounting, administrative and law firms--we handle the entire hedge fund business process from start to finish. We offer legal services, accounting services, tax planning services, tax return preparation services, business consulting services, and U.S. and offshore company formation services. We provide high quality services at competitive rates. But don't take our word for it, give us a call and let us prove what we can do for you.
Personal Consultations You get answers to your specific questions by speaking directly to Hannah Terhune, an experienced hedge fund and international tax attorney. Ms. Terhune's hard-earned knowledge and experience can be put to work to save you unnecessary steps and costly wasted effort. The consult is an invaluable opportunity to speak to Hannah one-on-one and learn how to achieve more in less time. Ms. Terhune's credentials and experience gives you access to a well-informed professional practitioner with sound ethical judgment. The availability of such expertise required to recommend the best solutions to you and provide sound ethical advice should never be taken lightly. We are confident that when you are finished with your consultation you will be impressed and more informed about your business plans than ever before. Call +1 (307) 213-4732 or Click Here to Request Services.
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