Auditor for incubator hedge fund cost full#

If you’re ready to begin the process to start an incubator fund, or if you’d like to receive additional information regarding the timeline or costs to launch your fund, schedule a complimentary consultation today. Generally, an incubator hedge fund can be created for $2,500 – $3,500, plus state filing fees to establish the fund and the management company. One of the primary catalysts for the growing popularity of the incubator fund is its cost effectiveness.

In addition, holding yourself out publicly as an investment advisor is also generally prohibited, depending on your state of residence. Marketing the fund through general advertising or general solicitation is prohibited. The longer the track record, the more attractive the investment will appear to prospective hedge fund investors.Īlthough you cannot market interests in the fund or accept capital from outside investors during the incubation period, you can begin gathering indications of interest through your personal network, friends and family (i.e., persons with whom you have a pre-existing relationship). It is our experience that managers typically incubate their funds for a period of 3 to 12 months prior to converting the fund to a full-fledged hedge fund. You can send out performance data to investors at anytime during incubation. This structure also enables you to easily transition the incubator fund into a full-fledged fund once you are ready.

The biggest cost variable in the setup process is if the hedge manager wants to go with a master-feeder fund structure. This structure grants you and your investors limited personal liability, as well as beneficial tax treatment. The costs of setting up a hedge fund can vary from approximately 15,000 to 50,000, and likely more if you use a silk stocking law firm.

Auditor for incubator hedge fund cost full#

Convertible structure to full Hedge Fund.Īn incubator fund is typically structured by forming two separate entities.