Prospectus can help you create a tailored prospectus for your hedge fund, and conform to the rules and regulations in which you are domiciled.
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 (faster), cost effective (save money) and proficient firm (better than others) globally.
A hedge fund is an investment fund that is open to a limited amount and type of investor. The hedge fund is, under law, allowed to make investments spanning a wide array of industries and products – others funds may, however, 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 and written prospectus is mandatory, particularly in light of the current economic conditions. A prospectus offering document can bring added 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 features. The final part of the prospectus is reserved for the subscription agreement, which is an essential component of any prospectus as the subscription agreement 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 prospectuses 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.
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
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 prospectuses for hundreds of varying 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 – in almost obligatory fashion – to assist our clients with their quest for growth once our services our complete.
Prospectus.com’s team has written and a hedge fund Prospectus and business plan for both large ($5 billion) and small investment funds. Our team can help structure your documents to ensure regulatory adherence, attractiveness and more.
Hedge Fund Prospectus
- How to Write a Prospectus
- Equity vs Debt
- Securities Attorney
- Hedge Fund Prospectus
- Real Estate Prospectus
- Shelf Prospectus
- Preliminary Prospectus Red Herring
- Final Prospectus
- Convertible Securities
- Rule 144A
- Regulation A Reg A
- Regulation S Reg S
- Regulation D Reg D
- Accredited Investors
- Experienced Investors
- EB-5 Projects
- Business Plan vs PPM vs Prospectus