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Golden Networking Golden Networking is the premier networking community for business executives, entrepreneurs and professionals, to experience what is new and next. Members are treated to exclusive industry-wide Leaders and Experts Forums, Experts Workshops, Business Receptions and Professional... More
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  • How To Legally Start A Hedge Fund At Golden Networking's Hedge Funds Leaders Forum 2012 0 comments
    Sep 5, 2012 1:36 PM

    (September 3, 2012, New York) Legally forming a hedge fund if is a bit more difficult than forming a corporation or LLC for a private business. It involves a lot of navigation of various investment compliance laws, and you could get in trouble if you don't seek professional help along the way. Just ask the speakers coming to Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016" (http://www.HedgeFundsLeadersForum.com).

    According to Investopedia, the laws surrounding and governing your business change entirely based on what country and state you are in. They also may be drastically different based on where geographically you are seeking investors, how you are contacting new investor leads, what you are investing in and how many investors you are working with in total.

    The first step would be to hire an experienced hedge fund attorney. This would be the most expensive option, and for many hedge funds it means that they have less capital available to recruit experienced team members or invest in software. Don't be mistaken by those who say you only need a small amount of money to get everything in place and start a hedge fund, as many funds spend over $1 million in their early stages. Others may start a fund with only $10,000, but the point is that there is always another team member to recruit, resource to obtain or capital raising expert who can help you get to the next level to hire. As a reference point, most hedge fund managers start their businesses with $15,000-50,000. Of course, there are plenty of exceptions who spend up to $350,000 in startup costs.

    Another option would be to not fully form your hedge fund, and instead try to find a hedge fund incubation or emerging manager platform solution. These platforms seem to always be coming and going in the industry, but the business model here is that the emerging manager platform allows you to start trading in your hedge fund and seeking investors while building an audited track record within their larger legal structure.

    The final option is to use a hedge fund formation template service, to cut costs and reduce your startup expenses by 60-90%. A hedge fund formation template service allows you to start your hedge fund using the same legal templates that high-end $20,000 formation attorneys use, while not taking up the attorneys valuable time. Hedge fund formation templates can be purchased for $5,000-7,000, and give you the freedom (and responsibility) to approach this step in a hands-on fashion.

    It is wise to have a complete plan for starting up your hedge fund before you take any action. What's the first step? On September 25 in New York, October 9 in Chicago and December 12 in London, hundreds of the most important players in alternative investments will gather for all-star agendas at Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016" (http://www.HedgeFundsLeadersForum.com). A virtual who's who will soon follow as one legendary manager after another will take the stage. Billions of investable assets will be represented by influential local and international investors who will listen with rapt attention as star managers and analysts discuss and debate the biggest issues facing the industry today.

    Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016" will provide attendees in New York, Chicago and London with the most up-to-date review of where this ever-changing industry stands and how regulatory and alpha expectation s will impact it. Recognized managers, investors, experts, regulators, and strategists will return to Hedge Funds Leaders Forum 2012 to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.

    Hedge Funds Leaders Forum 2012 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.

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