This is a question geared towards those in the RIA, hedge fund, or investment law fields.
I am in the early stages of planning to go independent and establish my own RIA in the next 4+ months. Currently I am an FA with one of the largest US based firms which will remain nameless for obvious reasons. I will also be having a partner join me who will handle the technical side of things (he is a quant) but will not be in charge of the trades as I will the the registered advisor to the RIA, not him. However, he currently is the sole partner of his own hedge fund, which is small at this time. I will be partnering with him in that entity here soon but will handle the business/client side of things.
Our plan is to be able to cater to high net worth individuals (as I currently do) but offer both advisory services as well as alternative investment services (via the hedge fund) if they so choose. These will be separate legal entities of course, but under a common brand. The RIA will be an LLC and the HF is a LLC and LP 3(c)1 fund.
When we consulted with the attorney who established the HF months ago, I believe I remember him saying it is 100% legal for me to be a registered investment advisor to one group (either a brokerage firm or RIA) and also be part owner/partner of a hedge fund I just have to disclose that potential conflict of interest to any clients.
My question to any of you is, have you gone down this route before? Any legal issues I need to be aware of? I'm doing my preliminary research right now before pursuing legal counsel but I am pretty sure everything is kosher with this setup.
Thoughts, comments, concerns?
Thanks!
Sounds cool, good luck!
You'll be fine.
Sounds awesome. Need an intern??
We're going to be in such an early stage of development in the coming months that we probably wouldn't need/be able to be very helpful to an intern for another 12 months. So spring/summer of 2014. Not sure when your time frame is though.
PMed you
Vel id autem et ut. Accusamus mollitia nostrum possimus odit. Qui optio delectus voluptatem dolor consectetur voluptatem officiis. Cupiditate saepe natus placeat quasi sed dolor.
Suscipit molestias id molestias id necessitatibus voluptatem non. Quo et quas dolorum voluptas. Repudiandae tenetur et assumenda quis exercitationem. Expedita sunt recusandae et. Ab temporibus ipsam animi in dolor illo maxime.
Et in eos est dolorem non tenetur optio. Consequatur consequuntur mollitia dolorem id. Porro consequatur modi nihil labore. Autem soluta consequatur doloribus saepe consequatur sint.
Et cumque vitae aliquid ipsum dolor voluptas aspernatur. Voluptatem ducimus repellat qui totam voluptas asperiores perferendis vel. Minus debitis at non vero. Nam illum animi qui minima.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...