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New Considerations for Launching a Hedge Fund: Insights from the experts

By Dina Ferriero | Thursday, May 16th, 2013

With mounting regulations, stringent reporting requirements and heightened investor expectations, we know that managers who are considering starting a hedge fund have a lot to think about. So, we joined forces with KPMG to host a jam-packed half-day seminar and networking event yesterday in New York City: Hedge Fund Launch 2.0: Navigating the New Environment.
During the event, we had the pleasure of bringing together over 100 investment management professionals for an exciting and educational day. Attendees heard from over 30 notable industry experts engaging in panel discussions on an array of topics related to launching a hedge fund.
Here’s a look at some of the insights and lessons learned from a few of our favorite panel discussions.

Achieving Institutional-Grade Technology

It’s 2013. Funds that lack a robust technology infrastructure to support their daily operations will struggle to meet the high expectations of investors, regulators and other stakeholders. Regardless of the size of your fund at the time of launch, there are certain key technological priorities all managers will need to address.
During this panel discussion, speakers from Evercore Partners, eSentire, and Eze Castle Integration shared their expertise on the essential IT requirements for hedge funds. Some of the most critical considerations they mentioned were the importance and widespread adoption of the cloud, disaster recovery and security.

Application Platforms for Successful Hedge Fund Operations

Now that the adoption of cloud technology has become widespread in the investment industry, the conversation is beginning to shift. Which of a firm’s essential applications should be hosted on a cloud-based platform? Which types of hosted applications should new fund managers ensure they have in place in order to satisfy investor requirements?
During this panel, experts from financial application vendors Eze Software Group, Advent and Code Red addressed the key considerations for new funds when it comes to determining when is the right time to implement certain apps, whether to host them in the cloud, and how to go about vendor selection. They stressed that the environment is constantly changing, so it’s crucial to be in tune with what functionality your firm requires, as well as what your investors want to see in place -- and these often evolve over time.

*Shameless Plug: To learn more about application hosting, be sure to attend our upcoming webinar, App Hosting 101: Managing Your Fund’s Essential Applications in the Cloud, on Tuesday, May 21.

Corporate Essentials: Human Resources, Insurance and Real Estate

manager's guide to starting a hedge fund downloadAs we mentioned in Tuesday’s post, this was one of the panels we were most looking forward to, and it certainly did not disappoint!
As you’d probably expect, most new hedge fund managers are highly focused on raising capital. This panel, on the other hand, dove more deeply into some often overlooked aspects of starting a new company: employee compensation and benefits, talent recruiting and management, insurance and real estate. Experts from McLagan, Ambrose, Newmark Grubb Knight Frank and Lenox Advisors came together to talk about some important considerations within these disciplines. Discussion centered on these main areas:

  • Human resources essentials, such as compensation structures and benefits packages

  • The types of insurance businesses require, and when new fund managers should consider implementing them

  • The importance of instituting a strong HR infrastructure and policies even before a firm has a large staff in place

  • Real estate options and the state of the New York City real estate market

  • Compliance concerns 

To learn more about how to launch a hedge fund, download our FREE 42-page guidebook, A Manager’s Guide to Establishing a Hedge Fund.

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