How Hard and Expensive Is it to Start Investment Fund?
A number of friends/acquaintances want to give me money to manage on their behalf. Obviously if I were to do this under a personal account it would be illegal. So how hard/costly is starting an investment fund that can take money from other people? I would just want the cheapest, simplest legal structure possible and all funds would be from people I personally knew. I say "hedge fund" because I imagine that the legal structure they follow is most conducive to what I want to do but I am not married to any particular fund type/structure. For what it's worth, my investing style is macro-based, and I would want need access to FX and US equities/ETF markets. I know this kind of thing might not be practical at this point but I was just wondering if it was.
Cost of setting up an investment fund
In 2011, one user shared:
To do it properly, it's expensive ($30+K). To do it half-assed, it's really cheap ($3K).You would set up an LP and an LLC to serve as the GP. Then open a brokerage account, accept investments, and trade them. You could just set up one LLC and do everything under that, but that's viewed as shady, there's a reason everyone does an LP...
The quality of your legal/accounting is what defines how much this costs. Also, unless you're going to have at least a few hundred K in AUM, don't bother as you won't have enough size to build a worthwhile track record.
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bumpity bump
To do it properly, it's expensive ($30+K). To do it half-assed, it's really cheap ($3K).
You would set up an LP and an LLC to serve as the GP. Then open a brokerage account, accept investments, and trade them. You could just set up one LLC and do everything under that, but that's viewed as shady, there's a reason everyone does an LP...
The quality of your legal/accounting is what defines how much this costs. Also, unless you're going to have at least a few hundred K in AUM, don't bother as you won't have enough size to build a worthwhile track record.
I think you should start a Private Equity Fund
You tell me if not going to college or getting a FT job or experience would hurt to try
Are you going to gain tangible knowledge? Yes? Do it!
I've seen this on the Wall Street Journal, do you think it would work?
Surgical Center and Hospital Conversion Seeks $15M, $50K per Investor, Attorney Escrow. Equity back plus 10% Interest Call Ernest 405-501-4022
Why LP and LLC required?
What are the disadvantages of doing everything under one LLC or LP instead of LP and LLC?
I'm assuming this is a troll, as you have posted on two other parts of the forum.
ask yourself this question: imagine if you were in the shoes of some high net worth individual (say, $100mm) who has investments in, say 10 different hedge funds / VC funds / private equity funds ($2-5mm invested per fund) and together in aggregate they avg you 10-15%/year...and then the real you comes along with your proposal for your new fund. Would you give "you" a shot?
It all depends on the specifics of your proposal....and the risk tolerance of the HNW individual...
You want to start a hedge fund, but you're asking what one is "in simple terms"?
Makes sense to me.
Is it really a hedge fund where you're playing with other peoples money or is it just some rich guy who is starting a prop/family type office??
Honestly..5-10 hours a week is not much time and it'd be very good experience if you're the type of person who is a self starter
I totally understand what you are saying but everybody has to start somewhere right. Just because I'm not some Ivy League hotshot who has spent time at major Wall St. firms does that mean I'm fit for nothing and I'm destined for total loserdom ?
Steven Shwartzmann studied interdisciplinary science for his undergrad and he got his first break when Prudential gave him $100 million to manage. You can actually see the video here he talks about it:
10:40 - 11:04
I'm not saying I'm as smart as him all I'm saying hasn't everyone depended on someone to help them achieve their ambition. Clearly one guy's good mood and impression of S.S. during lunch time on some random day in Newark, NJ changed the aforementioned's life forever.
So what's your actual question? Seems like you asked a rhetorical question to seek confirmation, which is very typical here. You simply wanted to hear that you don't have to be a "hot shot Ivy Leaguer" to get money, then sure you don't have to be.
If you're banking on having no track record, but a grand idea and some HNW is going to invest in you, then sure it could happen. Lighting strikes the same person twice too.
It could also serve as a resume builder (if the work he would be doing is any good)
I'd worry more about being highly profitable first. If you have your own money to trade and grow, all the better. If you need to be financed, look to friends and family first. Start small, build your track record, and solicit outside funding later.
If your only goal is becoming a billionaire, I suggest following the Madoff model.
Wtf is this? I'm no Edgar Allen Poe but learn how to write before you think of hedge funds.
What if your family/ friends gave you money as a "gift", and the returns you withdraw from the personal account is your way of thanking them?
So wishy washy....
And you just said wtf?
There's a reason that very intelligent people go to college and do all that boring shit instead of just pounding out max margin trades using their family's money until they amass a fortune.
Trust us on this one. Don't do it.
It just doesn't work for a number of reasons. It's impractical because you would foot the tax bill on the realized gains in the personal account. Plus, your investors would also pay taxes on their gains. Technically you could "gift" the distributions back to your investors, if the $ amount was small, but in the end managing pooled assets in a PA would just be incredibly inefficient.
I think that knowing the difference between your and you're is a prerequisite for starting a hedge fund.
If you will get any experience it's better than no experience at all.
Or just go Michael Burry style and start a blog. If you are good, soon your performance will be proven and people will come to you. Your knowledge means shit without any track record (i.e.Long term capital mgmt). And even your track record isn't reflective of your future performance. The people who successfully started a hedge fund have much more than those two.
Jesus Christ.
I fail to see how anybody would find out if you traded $2000 on behalf of your relative?
Just curious.
Facepalm.
Well in order to trade for others you need licenses and they all have requirements. I doubt a high school kid would meet the requirements for the series exams you would need to pass in order to trade on behalf of clients.
also keep in mind, he may be great for your network and be able to refer you to some people. 5-10 hours is an easy commitment too.
The whole idea of "hot shot ivy leaguer" or whatever background is irrelevant. Someone asked "would you invest in you?" - that's the relevant question.
Generally starts with starting your own fund w/ family / friends and maybe a little seed money after you have a track record in the industry. Your background is largely irrelevant when it comes to the school you went to - LPs carry about whether or not youre going to generate alpha and make them money. It's an opportunity cost for them to reallocate funds from Greenlight / Pershing to your fund and those LPs will need some sort of track record that the PM can point to.
Or the Jesus Christ model. That one's good too.
I read that since hedge funds are not highly regulated by the sec you don't need a requirment
You shouldn't need any licenses to trade other's money or setup a HF. What you will need is intelligence and the ability to source investor capital with well written statements and phone calls (something I'm not sure you can do right now). If you can get a self-made millionaire that's 60 years old to hand you a few mil, then by all means, prove us all wrong.
Haha this is so funny, good laugh.
@JackandDaniels
Thank you that's all I needed to hear. As far as the Ivy league comment is concerned that's because I've always suffered from an inferiority complex for going to a humble state school.
Newbie,
Alot of it is tax code related for the most part. Without diving into great detail, by using an LLC and an LP, the Managing Partners of a hedge fund's management company (the LLC) have no "individual" onus in terms of tax liability, particularly in the event of the fund's failure pursuant to non-illegal dealings. Basically, if the hedge fund goes belly up, provided it did nothing illegal, the Managing Partners are not deemed liable to pay for the failure out of pocket.
Additionally, there are benefits to using this structure for trading purposes (getting an IDSA, for example, or using it to manage SPVs), as some types of instruments (again, the IDSA comes to mind and so do 144A securities) have strict requirements as to who can invest in them on both a Net Worth and Savviness level. While it is less so for Net Worth, by using an LP/LLC structure, your management company can qualify for a status called QIB - Qualified Institutional Buyer - indicating that you are financially sophisticated and understand the risks of investing beyond the regular person.
I'm pretty sure hedge fund managers know how to use google pal...
Cross-posting below my answer to a very similar question asked ~3 months ago (where the poster wanted to know how to develop a track record that would allow him to begin gathering assets).
In your case, you need to begin a track record, something that other poster was ahead of you on. This means you need to start trading with audited books. Anyone with half a brain would tell you that there's value to learning a product or apprenticing yourself to an investor you respect by spending meaningful time on a sell-side trading desk or at a buy-side shop.
If you feel like you're comfortable taking the entirety of your net worth in your own hands, begin trading under your own name. Alternatively, some guys will get a PM (portfolio manager) title at their current shop and leverage that down the road as their track record because they can show prospective LPs an audited record of how their book performed.
[If you want to get institutional investors:]
Pool your own money along with whoever you can convince to let you invest on their behalf. If you can reach the scale where you can afford the six-figure cost of forming a proper GP entity, get it set up and registered properly (likely a multi-vehicle structure: i) a Delaware Limited Partnership for the fund, ii) a Delaware Limited Partnership for the General Partner of the LP, and iii) a Delaware LLC as the General Partner of the General Partner). Get the friends, family, coworkers, or whoever else gave you money into the fund as LPs.
(Edit for clarity: the cost mentioned comes from using a BigLaw firm, not for actually registering with the relevant regulatory bodies.)
Have your performance audited by a legitimate firm. Big 4 can be prohibitively expensive when managing a tiny capital base; respected regional firms like BDO or Berdon are acceptable affordable alternatives. None of these will be cheap, but you get points on two fronts: firms of that stature have strong reputations, and you convincing them that you're worth taking as a client is a signal in itself. Show at least 10 quarters of performance, and then do your best to identify and get in contact with institutions with mandates for emerging managers.
[If you want to run money for friends and family (joking, the 'FFF round,' or 'friends, family, and fools'):]
Depending on the sophistication of the investor, you may be able to get away with simple brokerage account statements, but the safest bet is to create business banking accounts, institutional brokerage accounts (you'd be surprised at how low the AUM minimums are for bulge bracket desks to take you as a client), and have your numbers audited. This is simply a good governance protocol, and if you get a few million to manage, over a few years (with good performance) your capital base will swell from appreciation plus your investors wanting to plug in more and telling their friends.
Frieds - thanks for that. So the LP owns 100% of the LLC?
@ all those Sarcastic replies : I believe in this : “Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. Don’t let the noise of other’s opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.” - Steve Jobs’
No... the structure would be as follows... The LLC acts as the management company and serves as the General Partner for the Hedge Fund which is structured as a LP.
I want to open a hedge fund. I hire an attorney and pay all the fees to open up Frieds Capital Management LLC. Their job is to be an investment manager/advisor for hire. Everyone employed by Frieds Capital Management is paid by FCM LLC. They are there solely to act as the fund management team and investment advisor. Now, I start raising capital for my first fund... lets call it the "FCM Lebowski Fund, LP". The sole purpose of the Lebowski Fund is to invest in bowling, booze, weed, nihilsts and rugs, especially rugs that tie the room together. I find capital to raise, but I need to use the LP structure in order ot make sure that 1) my investors are protected from harm baring loss of capital and 2) to keep unauthorized partners from transacting on behalf of the fund.
So, I have my LP, and The Lebowski Fund hires FCM LLC to be the General Partner in the fund. FCM LLC signs the partnership agreement, which specifies all of the rules and investment guidelines of the fund. In return for signing up as the GP, gets to make all the decisions on which bowling alleys, booze companies, weed-related investments, nihilist shills and rugs to buy provided they are within the guidelines of the agreement signed between FCM and the Lebowski fund. Now that the GP is in place, I go out and start rasing funds. I get $25MM in investor capital. The investors sign on as Limited Partners and own a portion of the LP in relation to the amount of their investment. The GP also owns a small percentage of the fund, but has different liabilities than his investors do.
So, in recap: LLC is Management company hired by LP to run the fund. LP is entity to invest through.
Why does the fund itself have to be an LP? can it be an LLC instead, with the MP being another LLC? Why does it have to be an LLC managing an LP, rather than an LLC managing another LLC?
huh...
starting your own hedge fund is not really escaping dogma. But to each his own I guess.
So what do you mean by 1)? If investors are protected from loss of capital, how does the LLC pay back the investor his money? I don't know what you mean by "harm baring loss of capital." Somebody has to pay.
just wanted to thank you, Frieds, for your excellent commentary on this.. I found it very informative
This should be on every thread that has to do with how a PEF/HF is structured and run. +1 imaginary SB.
LOl.
Zero percent. I can't believe people even took the time to write long replies to such a ridiculous OP.
If you're saying I'm trolling this is nothing comparing to my real trolling ability.
Anyhow, how are the equity bases of most hedge funds financed during inception ? Any worthwhile knowledge shared would be much appreciated.
Dont know you adarsh so not doubting you but if your one reason to start a hedge fund is to make money you have no idea what it takes and the money wont keep you going. Wake up and learn something than make ridiculous statements. Have some struggles, overcome them, then make a ridiculous post like this.
Silver banana awarded - awesome rundown! Thank you.
The first step to any hedge fund ever is creating a thread on WallStreetOasis asking about how to start a hedge fund.
Anything is possible, but without a track record from a successful/prominent hedge fund your chances are very limited unless you have a family member to back you
Why is it illegal to manage other peoples money under a personal trading account?
Also interested. Is it even illegal?
Covestor is a good solution that shouldn't cost you anything. I am not sure about all the details, but one of buddy's runs a fund on this sight and it seems pretty easy http://covestor.com/
Excellent advice Frieds.
OP, check out this article. It mentions a similar idea.
http://www.fwallstreet.com/article/170-how-to-start-your-own-hedge-fund
[quote=LIBOR]Excellent advice Frieds.
OP, check out this article. It mentions a similar idea.
http://www.fwallstreet.com/article/170-how-to-start-your-own-hedge-fund…]
Thanks, LIBOR...I bookmarked this website.
LIBOR,
Great link... Clearly it's possible to do it on the cheap, but I'd rather do it right the first time than not do it right at all. It's so much easier that way.
NYFinance, while I like that you brought up Covestor, it's a very price prohibitive measure. I don't know how much the OP is being given, but it's a far more expensive task using Covestor than it's worth, especially since we don't know how much is being invested.
Agree, FGH, the reason why it is illegal is due to the tax implications associated with investing. Even if it is a long term time horizon, there are still implications which need to be resolved.
Gator, I believe the term your looking for is GP, not MP. Now, while it is possible to use a multi-LLC structure, you have to consider the issues of taxation (especially with double taxation using an LLC as the fund itself) associated with both types of structure and protection from lawsuits. The benefits of using a Limited Partnership structure allow for a single taxation, and while the GP is exposed to unlimited liability in the event of a Lawsuit, he is protected by the fact that the GP will be an LLC, thus covering the individuals who are running the fun sufficiently enough. An LLC, while providing management companies from the liability exposure they wouldn't have as an LP, still has the double taxation associated with it because of the structure they are using.
I've also noticed that a number of reputable US banks are now offering back office products for hedge funds. Has anyone used these? If so, what do you like or not like about them? Is the cost reasonable?
How much money would be reasonable to start this fund? Do we need millions of dollars like most people say or can we start with...let's say $30k?
One thing I've always wondered is what the technical difference is between a "hedge fund" where all partners have to be "accredited investors" vs. just a regular limited partnership with an LLC (the management company) as the general partner and clients as limited partners (this setup was mentioned several times above). Why does a "hedge fund" that uses this structure need accredited investors? Why can't you run a hedge fund without accredited investors? I hope this question makes sense.
For other people considering what the OP was considering, I suggest you set up as an RIA and take discretion over separate accounts. The legal and accounting bills will kill you if you set up a fund with that small of an asset base.
Wait, so you're saying you can't set up ANY sort of partnership without having accredited investors? If a friend and I wanted to set up a partnership with me being the general partner and him being the limited partner for a lawn mowing business but we also wanted to buy/sell stocks, we can't do that because we aren't accredited investors?
I feel like I'm missing something in my understanding....can you help fill the gap? lol
Frieds -- LLCs are not subject to double taxation, C-corps are. I think some funds are set up as LLCs now. We decided against using an LLC structure for a fund primarily because most investors would be unaccustomed to it. I couldn't tell you any advantages or disadvantages of using an LP or LLC structure for a fund, I don't think it's a huge difference one way or the other. http://en.wikipedia.org/wiki/Limited_liability_company
[quote=SirTradesaLot]Frieds -- LLCs are not subject to double taxation, C-corps are. I think some funds are set up as LLCs now. We decided against using an LLC structure for a fund primarily because most investors would be unaccustomed to it. I couldn't tell you any advantages or disadvantages of using an LP or LLC structure for a fund, I don't think it's a huge difference one way or the other. http://en.wikipedia.org/wiki/Limited_liability_company[/quote]
LLCs can elect how to be taxed - they can use the S Corp, C Corp, Sole Prop or Partnership taxation qualifications depending on whether or not they meet the criteria for those types of taxation. I'm assuming the highest tax burden here is all.
Honest answer to starting a "small hedge fund" ... run under the table until you're big enough to not be able to hide it anymore. If you're sub seven figures, you'll be fine.
Run it as just an LLC or LP with the LLC managing it? What do you suggest as just running it under the table?
If it’s under a million can’t you just set up an interactive brokers type account? It’s not big enough to be a full time gig.
Then can either run it without fees or have a handshake agreement that they give you a bag of cash if you earn.
I don't think you need to get any series...I would be really shocked if people like Ackman or Einhorn took the Series 63...
Can anyone confirm/deny that? Someone at the firm has to have it right? otherwise, how can they be operating as an investment manager?
Thank you. So, to get the series 65, you don't need a series 7 beforehand, correct? Also, what is the purpose of the series 63?
Fix the link I posted above - it has a lot more information about the 63/66 and pretty much every other financial licence. Yes though, you don't need to take the series 7 to take the 65.
I also just remembered, you may not need to be an RIA to open an investment fund if you have 5 or less investors, depending on the state. I know its that way in New Jersey where I am. I can't find the actual NJ regulation, but http:/---.strictlybusinesslawblog.---/2011/09/11/state-investment-adviser-registration-requirements-for-private-fund-managers-part-6-the-northeast/ (www / com) lists the info for states in the north east, I'm sure you can find the regs for your state from there.
It might also be possible to include non-accredited investors, but I'm not a securities lawyer (talk to one before you try it). Read 'Reg D' if you're curious http://www.sec.gov/answers/regd.htm
I know this is two years ago but you can do a broker check for these things http://brokercheck.finra.org/Search/SearchResults.aspx?SearchGroup=Indi… "william Albert Ackman"
Wow. I find the Internet so exciting. I was thinking today about forming a Limited Partnership of about 25 people here in our Independent Living facility for the sole purpose of being able to do some investing through a program with Stansberry & Associates. By doing this we can start out with $1,000 per person whereas none of us would want to invest $25,000 each. My thinking is that we could work together within the LP and if, say, in one year we see it would be nice to eah continue investing on our own we could just vacate the LP and let it run out or dissolve it. Your help will be greatly appreciated. Also, as Managing Partner would it be necessary for me to invest the thousand if I am going to be doing the work?
So if I set a LP and a LLC, Do my limited partners (aka investors) need to be accredited investors for the LLC to manage their money?
Is it true that you can set the actual fund up in the grand cayman islands and a management company LLC here in the states? If you do it this way (in theory) you could accept non accredited investors.
Kinda like what the Swiss and HK companies do to evade taxes?
But if you are trading/investing in the US stock equity market, and as the owner of the LLC which is a US citizen, you are still bound to pay taxes like every other US citizen, correct?
Sure pay taxes, but can you trade an account that is set up off shore for the sole purpose of trading other peoples money and non accredited investors?
location??
If you start a "fund" all by yourself, you trade/invest with your own money ONLY (no outside investors) under your personal individual account with a discount retail broker, do you still have to go through the proper structuring? If you do file for an LLC and LP, can you lower your capital gain tax by trading through a business account?
We need someone experienced to lay these answers out for everyone
What happens when the fund looses all the money? How does the LLC "protect" the partners aka investors in the LP? Don't the partners in the LP aka "limited" have limited liability or do I have this wrong? I still need to know if the LLC can invest funds from non-accredited investors. I mean if the partners aka investors in sign a contract letting the LLC manage their funds, it's fair game right?
Prudent,
I'm going to be straight up with you. If you don't know what the word Barring means (and yes, I'm aware of the typo in my spelling in the original post from over 2 years ago - yes, that's right, 2 years ago), then you shouldn't be in Finance. Barring, comes from using the word Bar as a transitive verb meaning to exclude, usually by exception. So, know that I've told you what Barring means, can you translate this sentence: "my investors are protected from harm baring loss of capital."
I'll help you - "My investors" - the people who have entrusted their money with my hypothetical fund by investing in the LP - "are protected from" - don't have much to worry about being sued, having legal action taken against them, etc. - "harm" - anything that could go wrong from from management/operations/potential investment (see: vulture investing) that may result in legal actions being taken against the Fund's GP provided that the Fund's GP is not doing anything that is illegal - "barring" - Excluding - "the loss" - the not making and potential hemorrhaging of - "Capital" - any monies provided the investors into the LP.
So, with the translation - The investors have a certain degree of legal protection afforded them as LPs and don't need to worry about any sort of bad juju (provided the fund is above board) except for potentially losing their shirt in the investment.
Happy now? Or do you want me to continue answering your questions and breaking them down like this?
Epic typo at the end of the first paragraph...detail is key with legal jargon
Now that's what I'm talking about! I just like to understand things. Thanks man.
If that's really the answer you want with such a breakdown, my advice to you is keep a dictionary on hand and look shit up yourself. Nothing is better than being able to read the dictionary and look up words yourself. Try it some time. You might be surprised.
Haha. Nice.
Lol Frieds is getting a little emotional...I like it!
Check out Green Company (you can Google them). They are a good starting point. A peer of mine established an incubator fund where he managed his own money and also friends and families money, but under 25 people. He set up the LLC as the management company and the LP as the fund and we all came in at LP's. The structure would not allow him to be compensated, but he was able to establish a track record of performance with a goal of ultimately going to a full fledged hedge fund with hopes of attracting accredited investors and being compensated. We would automatically become investor's in the full fledged hedge fund as we were part of the incubator as all of us were not accredited investors.
He used Green Company for the accounting and taxes and used legal zoom to set up the LLC and LP, but he got some assistance from Green & Co in the legal process. All in all I think he paid about $10-$15k to get it set-up.
When you say not allow him to be compensated, does that mean he didn't get performance fees? But was still able to keep his profits?
Let's say John runs a fund while Mom and Dad are his investors and his Uncle and Aunt might join in the future. He wants a master-feeder structure so he creates a NY LLC to manage the fund, a Delaware LP to take in investor capital (the feeder), and then a Cayman company to make all the trades that the NY LLC decides on.
When you create an LP, doesn't it ask for the owners upfront? Just list Mom and Dad? Is John also an owner (I thought he's required to own a percentage)? Is the LLC a partner in the LP or just John?
Who owns each of these? Management LLC Feeder LP Master Co
Quick breakdown (from a top-down perspective):
Management Company LLC - owned by the founder and employees of the hedge fund, or whoever else has a stake in the actual business of being an Asset Management firm. Put another way, this is the company that's publicly-traded for companies like BX or OZM. This company will act as the General Partner to the Master Fund.
Feeder Fund LP - owned by the people who are investing their money with the hedge fund, like institutional investors and high net worth individuals. These people will get an ownership stake in Feeder Fund LP proportional to the amount of money/assets they contribute. The several Feeder Fund LP companies will in turn invest all of this money in the Master Fund, which is where all the different investors get consolidated into one portfolio. Feeder Fund LP is also where Management Company LLC serves as General Partner and physically gets paid for managing the Master Fund. Feeder Fund is technically unnecessary if you don't have many different types of investors that require varying levels of attention (e.g. international investors, etc)
Master Fund LP - owned by all the Feeder Fund LP entities and managed by Management Company LLC who acts as the General Partner. This is where all the assets are physically invested into securities, bought and sold, and all of the other activity you usually think of a hedge fund doing. As assets go in and out, Feeder Fund LP entities will increase or decrease ownership stakes and make payments to the Management Company LLC for performing the service of investing the assets in Master Fund LP.
Simple enough, just sounds scarier than it is.
Second nice summary of this thread.
Helps a lot, thanks
lol, Got it than ever before.
Might be one of the most useful threads on the site
So I guess in the EU it must be simpler to set up a fund through a UCITS/SICAV legal entity? If so, wonder how the US hasn't simplified structures and socialist europe has lol
Sorry to bump an old thread, but if I'm just trying to start my track record, and I'm not taking on any investors yet, is it really necessary to set up the fund LP, the management company LLC, and the GP LLC? It seems like I would just start an organizational brokerage account in the name of the management company, and then when I want to take on investors, I would go incorporate everything and file for a business license. I know that 30k startup costs is small in the grand scheme of things, but I'd rather be investing that money now, since I don't really need the legal structure to protect myself because I'm not taking on investors yet.
(I know I moved the goalposts from the original question, sorry about that).
Why not just use a PA with a respectable brokerage...
Respectable brokerage such as.. Any eg's?
A question: I set up an incubator : LP+LLC, run a portfolio for 2-3 years earning track record without fees. All trading/investing goes on in the LP. Meanwhile I find investors of different classes, I.e. US taxable, tax-exempt, foreigners. It means to change to full-fledged HF I will need to set up several different Feeder LPs and a Master one. Is it legally hard to change the function of the initial LP from being an investment vehicle to just become a partner in the Master, so the latter will become a portfolio holder instead? Or it's advisable to form the whole structure MLP-FLP-LLC right at the start?
Would you be able to operate a hedge fund as a division of a C corp? I was just wondering if that is a viable alternative.
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Nesciunt consequatur rem neque consequatur atque. Dolorem ab natus voluptatum perferendis provident est quam. Debitis ut inventore praesentium. Beatae sunt rem et ipsa praesentium qui. Ipsam incidunt ut est quos ea.
Et rerum blanditiis sint velit et sunt occaecati. Recusandae voluptatem quis ratione quod qui illo accusantium. Deleniti quod et ut animi ut aut. Deleniti velit in dolorem. Et distinctio commodi recusandae qui facere.
Vel blanditiis cupiditate ratione sit. Sapiente aut voluptates et hic hic autem. Ea fugit sapiente quas ut non placeat sequi. Harum nemo laboriosam totam quibusdam numquam. Aut et qui est officia possimus et. Est cum voluptas et voluptatem eum ea ipsam. Sequi omnis corrupti quas aut.
Distinctio consectetur laborum molestiae dolorem repudiandae eum. Delectus enim nulla optio nam. Qui sunt quibusdam reiciendis et magnam eius.
Quos totam voluptatibus qui incidunt sint accusantium. Nisi nam tempora possimus aspernatur explicabo fugiat. Enim ut a voluptas dolor repellat vel aut dolores. A quae a aut sunt natus facilis hic. Quidem possimus porro ullam qui.
Dolorem unde esse porro doloremque. Voluptate id iusto magni. Amet nihil voluptate est laborum temporibus.
Possimus illum quo fuga ut. Ut deleniti velit atque architecto asperiores. Vel dolore tenetur quis voluptatibus porro.
Commodi libero consequatur sint. Et facere quaerat accusantium. Alias est est hic iusto sed. Nesciunt veniam porro pariatur consequatur.
Delectus soluta quas ipsam minima error nihil voluptatem molestias. Eos aut neque iusto ad recusandae rerum. Ut quas recusandae in excepturi qui facilis. Quaerat eum inventore ullam in sed voluptas.
Et alias iure quia eligendi facere. Eum quasi explicabo sed.
Odit nisi molestiae magni molestias autem et. Nulla dolor fugiat animi tempore ipsa. Et quam et autem ducimus delectus.
Doloremque quibusdam aut voluptas molestiae fugit repudiandae esse. Perspiciatis sunt fuga cumque eveniet qui. Officia nesciunt quis nihil. Laboriosam qui excepturi consectetur mollitia sunt quaerat laudantium.
Rerum eaque quia voluptas expedita eum libero non. Iste non illum dolorem facere distinctio minus hic. Quo ipsa inventore temporibus sed aut commodi. Omnis cum fugit non et.