For many emerging fund managers, exempt reporting adviser (“ERA”) status is the best starting point. However, many fund managers mistakenly assume they should start off as a registered investment adviser (“RIA”) or should remain an ERA even after their activities and strategies change. The question first arises at Fund I, but it’s a recurring question...
ERA vs RIA: When Private Fund Managers Should Make the Switch
December tends to pull private fund managers in several competing directions whether it be portfolio companies needing attention, investors wanting year end reporting, valuations needing to be finalized, auditors beginning their work, and the management company considering about what comes next. These competing interests make the year end a particularly useful time to ask a...
During an initial client consultation with fund managers, one of the first questions we ask is deceptively simple: “How large do you want the fund to be” or “How much are you raising?” When we ask why, the conversation can quickly become very interesting as the target set by the fund manager can be driven...
Scroll through most private fund newsletters this year and you’ll see the same three words used over and over: “evergreen”, “continuation”, and “liquidity.” The headlines make it seem like every sponsor is racing to include a semi liquid option in their strategy. However, most of these articles are written for funds managing billions, not for...
Aspiring fund managers often ask the time required to start a fund, the typical lifecycle of a fund, and what preliminary steps they should take. While the answer can vary depending on the specifics, this article serves to provide private fund managers with insights on steps to take and what to expect throughout the process....
SEC ADOPTS NEW PRIVATE FUND ADVISER RULES By: Kamden Crawford, Esq. On August 23, 2023, the Securities and Exchange Commission (“SEC”) finalized new rules under the Investment Advisers Act of 1940 (“Advisers Act”) for advisers of private funds (“New Rules”) with the purpose of enhancing protections to investors in private funds. The New Rules can...