Stemming from our diverse securities and corporate law practice, our hedge funds and private equity team has extensive experience forming investment funds of all sizes and complexities. We advise clients on many types of private funds, help them structure and negotiate transactional terms, prepare fund documents, ensure they comply with regulatory frameworks, assist with forming and registering investment advisers and broker-dealers, and more.
Ranging from private placements, hedge funds, and private equity funds to real estate, oil and gas, and mining, as well as other specialized funds, we help clients structure, design, and legally document everything they need as efficiently and cost-effectively as possible. To learn more about our services, contact Mangum & Associates today.
Hedge Funds vs. Private Equity Funds
Hedge funds and private equity funds share a few similarities, but it’s important to understand some key differences as well. These differences can impact investor agreements.
A hedge fund is a partnership between a general partner and investors (limited partners). The general partner oversees the fund’s day-to-day management and investment strategies. Hedge funds are designed to provide returns as quickly as possible—regardless of whether the market is booming or in decline. Hedge fund managers will invest in just about anything they believe will give them an immediate return. Compared to many investments, hedge fund strategies are more aggressive and riskier.
They are also exclusive—investors in a hedge fund must be accredited and demonstrate that they have a high net worth. The funds are given wide latitude, but they must disclose their strategies to their elite investors.
Private equity funds, however generally take years to cultivate. These funds operate more like a venture capital firm—using leveraged buyouts to acquire financially vulnerable private companies and other enterprises. In addition to a general fund manager, these funds typically have a cadre of corporate experts that help oversee the acquired businesses. Private equity managers generally are more interested in supplying start-up companies with venture capital.
With both private equity and hedge funds, there are a number of relationships here that need to be handled. Our team of nationally respected securities attorneys helps funds manage these relationships, including:
- Individual investors supplying capital to the fund,
- Companies and assets that need to be purchased,
- Negotiations that need to take place, and
- Agreements that need to be drafted.
In addition, each fund must register with the SEC and understand and comply with SEC regulations that may be subject to change from one administration to the next.
We Can Help You Focus on Achieving Your Goals
Your company operates a pooled fund to purchase companies, assets, real estate, debt, and more for the purpose of selling those assets and investments at a profit. Your investors trust in both your knowledge and your vision. So it’s important that you be able to focus your attention on market trends. Our job as your attorneys is to focus on SEC regulations and the current regulatory environment, as well as the paperwork required to get your private equity firm or hedge fund off the ground.
As your private equity and hedge fund attorneys, we will ensure that your investment structure complies both with SEC regulations and your particular needs and goals. And because we value long-term relationships built on trust and mutual respect, you’ll find that your hedge fund attorney at Mangum & Associates is responsive, client-centered, and willing to spend time with you to understand your unique priorities.
What Our Hedge Funds and Private Equity Team Can Do for You
Mangum & Associates provides a broad range of boutique services to our clients. We can help you draft fund documents, ensure regulatory compliance, negotiate acquisitions, manage tax obligations, and ensure that your fund’s structure meets your individual goals. Our team has worked with a diverse array of funds, including domestic and international, real estate funds, and exchange funds.
We offer comprehensive legal services for hedge and private equity funds, guiding them through their complex transactions, compliance needs, and other matters, including the following.
Form and register broker-dealers and investment advisers
The SEC prints a guide to registering as a broker-dealer or investment adviser, but this won’t provide you with the kind of one-on-one guidance and personalized advice that a securities lawyer offers. We help broker-dealers and advisers ensure that they are in compliance with SEC regulations. One of those regulations is to register with the SEC and ensure that your fiduciary responsibility to your clients is unimpeachable.
Structure your investment fund so that it conforms to your goals
A single mistake in the structuring of your investment fund can have a profound impact on its operations and viability. We will take the time to understand your precise goals for a fund. This includes considering your immediate and long-term goals as well as considering the tax implications of key decisions.
Our attorneys will ensure that your fund is structured to meet these goals. We are proficient in establishing limited partnerships and designing investment and payout structures that meet your unique needs.
Prepare your fund’s documentation
Hedge fund documents typically include a private placement memorandum, an LP agreement, subscription documents, an investment management agreement, management company operating agreement, and Form D filings. The documents are required to be filed at both the state and federal level. We will prepare all of these core documents necessary to launch your fund.
Provide advice regarding the current regulatory environment
Financial regulations change each time a new president takes office. Since 1999, Mangum & Associates have helped our clients navigate the current regulatory environment and ensure compliance with SEC regulations.
Structure venture capital and buyout investments
We help funds manage buyouts and venture capital. These include private equity funds, mezzanine funds, real estate funds and more. Here, the regulatory environment plays a crucial role in the process. We advise fund managers at each step of the way and help them prepare agreements, as well as ensure compliance with current laws.
Structure and negotiate acquisitions
We can help negotiate and draw up agreements related to any acquisitions that your fund makes. Our private equity attorneys draft clear and legally binding agreements and help you negotiate your complex business acquisitions—ensuring that the terms align with your long-term goals.
Negotiate seed capital arrangements
For those investing in startup companies, we negotiate venture capital stipulations in seed capital arrangements. Our extensive experience with securities and venture capital helps us structure arrangements that maximize your investment.
Draft and negotiate managed account investments
We will prepare, structure, and organize documentation related to managed account investments. We also offer counsel on the current regulatory environment and ensure compliance with SEC regulations.
Structure and document hedge fund linked notes and derivatives
We structure both principal-at-risk and principal-protected notes and provide full documentation for investors. We also structure fund derivatives while ensuring regulatory compliance.
Structure and negotiate acquisitions of fund investments
Both hedge funds and private equity funds need to acquire and structure investments to thrive. A hedge fund attorney at Mangum & Associates can help you with matters involving asset-backed investments, securities, and more.
Our hedge fund and private equity team has extensive experience with PPMs. We can help funds draft PPM documents that will help them raise money as well as reach out to investors. A PPM (private placement memorandum) is a legal document containing information concerning your needs in relation to your investors. You essentially provide investors with a detailed look at what their obligations are relative to your fund. The PPM insulates you from potential regulatory blowback by making your requirements transparent. The PPM is also designed to give investors some assurance as to what their potential returns will look like.
Mangum & Associates has experience drafting ironclad PPMs that ensure SEC compliance as well as protect your fund from liability or regulatory problems.
We are adept in various aspects of transactional law that are integral to a private equity firm’s interests. We also have a thorough knowledge of various industries and can handle complex transactions.
This includes the structuring of majority buyouts and minority investments, including those of publicly held companies. We can also aid you in acquiring new companies and buy-sell transactions.
Due Diligence Investigations
The attorneys at Mangum & Associates can help you perform due diligence surveys of a target company. Our private equity team includes skilled researchers and analysts that understand how business, securities law, and corporate governance intersect. We provide our clients with in-depth analyses of a target company’s books and internal organization that can help you decide on whether or not an investment is safe.
Today, securities regulations are constantly changing and evolving. Unfortunately, a single misstep can result in unwanted regulatory scrutiny and penalties. Mangum & Associates ensures that our clients are compliant with all new SEC regulations. We provide ironclad documentation, ensure that your fund is registered with SEC, and make certain that your interests and liabilities are accounted for during every transaction.
Contact Mangum & Associates Today to Learn More
Mangum & Associates can represent your interests at every step in the acquisition process. Our knowledge of the market comprehensive analysis of the current regulatory framework ensures that your fund’s structure meets your individual goals. Contact us today to learn more.