Hedge Fund Formation

One of the first things that an investment manager needs to do in order to start a hedge fund is to retain a firm that is experienced in hedge fund formation and hedge fund structuring. Stonegate Global Fund Services is knowledgeable and proficient in the  processes of creating domestic and offshore hedge funds, and also experienced in guiding its clients through the complex process of fund formation and operational infrastructure integration.

We work with you to evaluate your business objectives and advise you on the best structure for you and your team by creating a streamlined road map with you and formulating the appropriate offering documents to create your hedge fund.

We strive to ensure that every detail is covered as we structure your hedge fund and the general partner.  We are also well-versed in drafting the corresponding limited partnership agreement (LPA) and operating agreements.

We offer hedge fund formation for both domestic and offshore hedge fund creation in various jurisdictions.  The decision to create a hedge fund in a particular jurisdiction is primarily driven by investor location, sentiment and demand.

For domestic hedge funds, we typically create the hedge fund as a Delaware fund.  We can create offshore hedge funds domiciled in any number of jurisdictions such as Cayman Islands, Bermuda, BVI, Luxembourg, Liechtenstein, Dubai, Guernsey, Jersey, Hong Kong, Isle of Man, Gibraltar, Switzerland, and Nevis among others.  Each jurisdiction is organized as either a low or zero tax jurisdiction where there is no corporate level tax for the offshore fund, while investors are typically taxed in their country of residence.

Whether creating a domestic hedge fund or an offshore hedge fund, we typically structure the investment manager domiciled in the state of residence of the investment management team.

The offering documents also include a private placement memorandum (PPM), or non public offering memorandum. These documents contain the terms and conditions of the investment offering along with risk and other important disclosures, and which is typically provided to prospective investors.