Registered Fund Services and UMB Fund Services have jointly developed a turnkey registered hedge fund program.
The program reduces fund start-up and overhead costs, and supports a fund’s board of manaers.
The two companies noted that more hedge funds are registering with the Securities and Exchange Commission due to the ability to accept an unlimited number of accredited investors, thereby allowing the manager to reduce the fund’s minimum investment.
Registration also requires hedge funds to have independent fund governance, which increased fund transparency and appeals to more investors, particularly institutional investors. And finally, registration allows hedge funds easier access to distribution platforms and intermediaries.
“Many hedge fund managers would like to offer a product that, while not a mutual fund, will allow them to keep their normal fee structures and liquidity provisions in place while also offering them broader distribution through RIA platforms, large broker-dealers and other channels,” said Lonnie Macdonald, executive vice president of business development for UMB Fund Services.