Start a Fund

We offer services through our expert partners that allow you to launch your fund immediately while still being cost-effective.  We offer funds with all types of trading and structures including hedge and private equity funds in both the U.S. and offshore jurisdictions.

We work collaboratively through our Partners to determine your needs and the path you want your fund to follow.  The fund formation process is streamlined to create a structure to compliment your trading strategy and give you a marketable product.

  • Hedge Funds
  • Commodity and Forex Pools
  • Fund of Funds and Master Feeder Funds
  • Private Equity Funds
  • Real Estate Funds and Trusts
  • Multi-Series and Class Trusts and LLC’s

Fund Formation Process

Initial Consultation

During your initial consultation with our independent partner firm, we will discuss your  fund or commodity pool’s strategy, who you want to target, regulatory and compliance requirements, and the costs associated with running the fund and management company.

Fund Formation Interview

The attorney will provide a questionnaire that will highlight your goals:

• Strategy;
• Targeted investors;
• Proposed naming and fund structure
• Compensation of the management, including management and incentive fee/allocation;
• Regulatory matters;
• Investors (non-accredited, accredited, qualified client or qualified purchaser);
• Residences of investors (blue sky state notice filing requirements);
• Use of placement agents or fund marketers;
• Selection of service providers including brokers, administrators, and marketers;

Structuring the Fund and Preparation of Fund Documents

Your assigned attorney will advise regarding the core considerations involved in establishing a fund and consult with you to structure the fund in manner best suited to meet your objectives. A domestic hedge fund is typically structured as a Limited Partnership (LP) with its General Partner organized as a limited liability company (LLC) to protect the personal liability of the GP’s principals. The LP is domiciled in Delaware and the GP in the state where the manager provides the investment advice. The following will also be provided:

Limited Partnership Agreement (LPA)

The operating agreement for the Fund that sets forth the powers, duties, and rights of the General Partner and Limited Partners and provides for all relevant terms governing the fund including compensation of the GP, valuation of assets, subscription and withdrawal terms, indemnification, dissolution, among other terms.

Private Placement Memorandum (PPM)

The disclosure document prospective investors receive to allow them to make a fully informed decision regarding an investment in the Fund. It contains full and fair disclosure regarding investing in the Fund, including specific information as to investment strategy, the background of the principals, potential risks, terms of the LPA, valuation procedures, tax disclosures and a listing of the Fund’s service providers.

Subscription Documents

The investor questionnaire contains questions meant to determine the sophistication, accreditation and tax status of prospective investors. The subscription agreement for the fund requires the investor to acknowledge a number of representations regarding their investment in the Fund and their execution of the subscription agreement formally entitles such investor to all rights as a limited partner.

General Partner’s Operating Agreement

The operating agreement for the manager of the Fund outlines the equity ownership of each principal and their decision making authority. The agreement outlines the allocation of profits and losses, indemnification of the members, provisions regarding the transfer of membership interest and the dissolution and winding up of the Company, among other terms.

Introduction to Service Providers

To be marketable each Fund should have an attorney, broker, administrator and auditor/tax preparer engaged before taking on outside investors. Our contacts are reputable firms in the industry with the expertise and knowledge needed for this complex industry.

Compliance with federal, state and other regulatory securities laws

Form D is a filing with the SEC that provides notice of an exempt securities offering providing detailed information regarding the offering, the Fund, use of proceeds, types of investors and placement agents used. Form D is not subject to review or approval by the SEC but must be filed within 15 days of the first sale of interests to investors in the offering.

Along with the Form D notice filing at the federal level, each state requires that notice be provided to its securities regulatory authority when an exempt offering is made to a resident of the state. The timing and content of the notice and fee payable to the state differ between jurisdictions.

Depending on the net asset value of your fund and the state you are registered, you will need to receive an audit from a PCAOB registered accounting firm.  Summit will walk you through the process, a very easy and manageable engagement that is mostly conducted through your administrator.

Summit will complete the audit and the prepare the needed tax returns for your LP and GP.  Since we have audited your books and records already, the preparation of the federal and state forms including the K-1’s is expedited ensuring your investors received their documents in a timely manner.