Whether you are preparing to launch a new hedge fund, considering expanding your established firm to another geographical location, or simply interested in relocating to a new space, there are a few important real estate options to consider, including commercial space, subleases, and hedge fund hotels. Today, we will delve deeper into one of these primary options, hedge fund hotels (also known as “managed suites” or “executive suites”) to analyze the benefits of this type of real estate.
What is a hedge fund hotel?
A fully-managed hedge fund hotel, or managed suite, offers investment management firms a high-end space, usually in a premium location, complete with access to many of the most important necessities required to get up and running quickly and efficiently. These hedge fund office suites typically provide premier technology, business solutions, telecommunications, and administrative and business support in an environment that is suitable for hosting potential investors and other important visitors. With these major considerations taken care of, fund managers can limit launching or relocation costs and focus on asset management and the growth of the fund.
What are the advantages?
Compared to other investment firm real estate options, hedge fund hotels offer a number of advantages for firms that are seeking a new office space. Some of these benefits include:
Leasing Flexibility: Commercial leases typically require long-term commitments -- up to three to five years. By contrast, hedge fund hotels are usually available in 6-to-12-month leases. This flexibility can be especially attractive to new hedge fund managers who are eager to gauge their success before locking into an expensive long-term financial contract.
Quick & Simplified Implementation Time: With several of the largest aspects of a hedge fund launch or relocation project conveniently bundled into a hedge fund hotel package, managers can expect to become fully operational much more quickly. This allows them to focus their efforts on other top business priorities.
Technology Services: Premier hedge fund hotels, such as those managed by Eze Castle Integration, offer a state-of-the-art technology environment with a highly-skilled IT support team onsite and available 24x7x365. With Eze Castle's Manhattan hedge fund hotel, for example, tenants can easily plug into the Eze Private Cloud and reap the benefits of simple and flexible IT with secure infrastrucutre protocols and disaster recovery protections.
Telecommunications: Telephony services are typically included as part of a hedge fund hotel package. Local and long-distance calling is standard, but premier managed suites will incorporate more advanced phone system services as well, such as those provided by Avaya.
Business Support: At Eze Castle, we provide a dedicated Client Relationship Manager to manage our hedge fund hotel and support clients. This individual is responsible for ensuring that firms' technology and operations run smoothly at all times, and acts as a liaison to technology partners and vendors when necessary. This alleviates an often time-consuming responsibility from the hedge fund managers.
Administrative Support: The best managed suites contain not only fully-equipped offices, but conference rooms, a kitchen, and a reception area as well. These seemingly minor amenities go a long way in presenting a professional, well-established image to potential investors and other visitors. Additionally, some hedge fund hotels provide firms a receptionist or administrative assistant to handle such activities as meeting facilitation and reservations.
For more information on hedge fund real estate, be sure to check out the following articles:
Eze Castle's Hedge Fund Hotel in New York City features the highest caliber technology, business services and amenities for a startup or transitioning investment firm. Learn more about the Hedge Fund Hotel here or contact us to schedule a tour.
Editor's Note: This article has been updated and was originally published by Dina Ferriero (Eze Castle Integration) in May 2011.