- August 7, 2015
- Posted by: Vincent Sarullo
- Category: Direct Lending, Fund of Funds, Hedge Funds, New Funds, Private Equity / Venture Capital, Real Estate, SMA, Tax Liens
Are you trading your own account, investing with a group of friends, or trading for another hedge fund manager? You may have thought about launching your own hedge fund but didn’t know where to start. Every year we see hundreds of hedge funds, private equity funds, venture capital funds, and real estate funds preparing for a launch. Take your experience and strategy to the next level by launching your own fund! The challenges are many; however, the reward is unparalleled.
For the emerging manager who wants to start a fund there are many resources available to them. Generally, a manager will start by asking a friend who has a fund what they did, and although there is great value in leveraging the experience a colleague, it pays to seek out other resources to guide you through the ever-changing landscape of service providers, technology and regulations.
The industry service providers are in a constant state of flux and even the simplest component can be more complex than anticipated. For example, opening a fund’s bank account, may present a challenge since many banks that served the industry have stopped taking on new funds or have closed their alternative fund services all together. Overall, the industry has become very specialized and focused at the service provider levels.
Continued consolidation of third-party administrators and audit firms has actually added to the availability of options for emerging managers. The service providers you or your colleagues have worked with in the past may not be there anymore. Since larger firms are not able to serve the smaller emerging managers, there are many reputable service providers there to fill the void.
Tower Fund Services specializes in helping new managers get started. Drafting a team of legal, administration, and audit contacts can be key to leveling the playing field against the competition. It will enable managers to utilize their strengths to establish a viable business and investment vehicle.