Establishing a Hedge Fund: Key Structuring Considerations

Hedge fund structuring is often perceived as simple replication, but this is a misjudgement. While there is a degree of consistency across many products, a prudent manager must carefully consider a range of factors when establishing a hedge fund, including but not limited to the initial and target investor base, their jurisdiction and tax preferences, and the composition of the intended portfolio of assets. In particular, the route to launch has also grown more complex, with the blurring of liquid and illiquid strategies and an increasingly onerous regulatory environment.

This guide by Craig Borthwick and Freddie Newman from Dechert's financial services group addresses key establishment considerations for managers seeking to launch a hedge fund.