Hedge Funds & Mutual Funds

Hedge Funds-Mutual Funds Offering Prospectus Document Services via Prospectus.com

Prospectus.com team of investor offering document specialists can draft your hedge fund prospectus or mutual fund prospectus for virtually any jurisdiction worldwide.  We are considered to be the most efficient, most cost effective, and most proficient firm in the industry.

Our team can prepare and assist in the filing of all paperwork with regulators and help to launch the fund.  Our industry-leading firm specializes in hedge fund setup and document drafting for nearly all paperwork, including the prospectus, the offering memorandum and the private placement memorandum, as required.  We prepare the hedge fund prospectus for various onshore and offshore jurisdictions and for numerous hedge fund offerings for Limited Partnerships (LP or LLP), Limited Liability Companies (LLCs), open ended and closed ended funds, UCITS, umbrella structure and more.

Our hedge fund documents are industry standard and utilized by hundreds of funds and law firms.

The benefits of our hedge fund prospectus and offering memorandum include:

* Good for LP or LLLP Hedge Fund Private Placement Memorandum
* Good for LLC Hedge Fund Private Placement Memorandum
* 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 short-term and other securities.  Hedge funds are normally a limited partnership structure, such an LP, and they can be onshore, such as in the United States or China, or offshore in places like the Cayman Islands and Bermuda and many other jurisdictions.  Investors are often diverse and strategies employed by such funds, such as “hedging” an investment, are commonplace.  Often the positioning of hedge funds is short or long term, depending on the scenario and the amount invested.

Hedge Fund Structure

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 number 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 a small number of investors, the hedge fund, in the hedge fund prospectus, will state that it is only allowed to have investors buy in for a ‘large’ investment.  For example:  if a hedge fund in its offering memorandum is seeking $100 million in capital, they may have a million dollar minimum buy in or higher.  Additionally, investing in a hedge fund also implies that the investment is illiquid.  This means that one’s investment will remain in the company for a relatively long period of time (a year or more).

Sophisticated Investors for a Hedge Fund Private Placement

Hedge funds are generally unregulated in order to attract what are known as a “sophisticated investors”.  For American investors in hedge funds, the investor must be “accredited”; while in Europe this is often called “experienced”.  Accredited investors must have a certain net worth (this net worth standard was updated in July 2010 by the financial overhaul bill that went through and was approved by the U.S. Congress) while sophisticated investors must have investment experience and knowledge.  In addition to an accredited investor having a certain amount of net worth, they must also possess investment knowledge.  Hedge funds ‘hedge’, which basically means they attempt to maximize profit while reducing risk and doing this faster than, say, a mutual fund, which has a longer-term view of investment.  Therefore, investors must have knowledge of the general industry.  Our team ensures that all hedge fund documentation we draft conforms to the accredited, sophisticated or experienced investor criteria standards.

Prospectus.com team has years of writing experience and working with hedge funds from across the globe.  We write investor-ready hedge fund prospectus and private placement memorandum documents.



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Hedge Funds-Mutual Funds Prospectus Preparation

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Hedge Funds-Mutual Funds Offering Prospectus Document Services via Prospectus.com