Overview
Our clients, ranging from start-up ventures to established firms with hundreds of billions of dollars under management, benefit from Ropes & Gray’s deep experience in the industry.
We represent all facets of the industry worldwide, including hedge fund sponsors (both institutional and start-up sponsors), credit funds, funds of funds, and other hybrids, as well as institutional investors and seed capital investors.
Our attorneys advise clients on complex investment strategies involving currency overlay and other currency management and hedging programs, tail risk funds systems trading platforms (including IP issues), and commodity trading product design, among others.
Cutting-Edge Insights
We assist in the organization and offering of hedge fund products in the United States and in non-U.S. jurisdictions using a variety of structures and vehicles. Our practice encompasses:
- International fund formation and operations:
- Fund documentation and negotiation
- Operating and profit sharing arrangements
- Anchor investor capital negotiations
- Management companies & general partners:
- Operating and advisory agreements
- Management fee and performance-based compensation arrangements
- Trade structuring, including international tax advice
- Investment transactions:
- Private debt, distressed asset, special situation, growth equity and real estate transactions
- Spinouts and mergers
- Derivatives and commodities:
- Over-the-counter and exchange-traded transactions
- Commodity Pool Operator (CPO)/Commodity Trading Advisor (CTA) formation and operation
- Impact of derivatives regulation, including Dodd-Frank and European Market Infrastructure Regulation
- Counterparty risk management and negotiation of counterparty documentation
- Compliance and regulatory:
- Response to regulatory inquiries and investigations
- Advisers Act/Dodd-Frank regulatory implications and registration
- Commodity Futures Trading Commission and National Futures Association registration, regulation and compliance issues
- European Union regulatory requirements
Complementary Offerings for One-Stop Servicing
The hedge funds team works with attorneys across the firm with deep knowledge and vast experience in related disciplines critical to funds and their investors, including:
- Business restructuring
- Taxation & ERISA
- Government enforcement
- Securities litigation
- Estate planning
- Employment law
Experience & Clients
Clients take advantage of our comprehensive, hands-on and cutting-edge approach and seek our advice on innovative product solutions. Examples of our client work include representing:
- Bernard Partners, the management company founded by Dan Zwirn and former partners of D.B. Zwirn & Co., to relaunch their asset management and finance business. In addition to establishing Bernard Partners and structuring the internal compensation arrangements, this involved an innovative joint venture with Westaim Corp., the formation of a jointly owned asset manager, and a public Canadian fundraising of $200 million for the manager by Zwirn’s team.
- CVC Credit Partners, a leading global asset manager, on its performing loan fund and direct lending platforms We also advised CVC on the formation of its European Mid-Market Solutions Fund.
- Leading multinational hedge fund with $29.6 billion in AUM in the purchase and sale of various private debt, equity and real estate investments, including domestic and cross-border joint ventures often involving complex structures, and in matters relating to its trading of public debt and equity securities.
- The Blackstone Group’s Strategic Alliance Fund, LPand Strategic Alliance Offshore Fund, Ltd. in their seed investments in multiple hedge funds. We also formed Strategic Alliance Fund LP II and Strategic Alliance Offshore Fund Ltd. II, domestic and offshore funds with a hybrid private equity and hedge fund model, which closed with approximately $2.3B in commitments.
- An investment fund with over $27 billion of assets under managementin the purchase and sale of various private debt, equity and real estate investments, including domestic and cross-border joint ventures often involving complex structures. We also advise them on matters relating to its trading of public debt and equity securities.
- PIMCO, which has over $1.5 trillion in assets under management, as lead counsel since early 2010, in connection with a wide range of sophisticated and complex matters, including advising on all aspects of the formation, marketing and private placement, ongoing operations and regulatory compliance of numerous hedge funds and private equity funds.
- Grantham, Mayo, Van Otterloo & Co., LLC in all aspects of its hedge fund business. A recent matter included the formation of a hedge fund that invests in long and short positions with respect to bank loans, bonds, notes and other obligations of issuers experiencing (or expected to experience) financial stress.
- Sansar Capital Management, an Asia-focused hedge fund manager. We provide advice on all aspects of its business, including trading, compliance, counterparty documentation, private investments and securities restrictions, and represent Sansar in bankruptcy petitions and fund documents.
- Commonfund in connection with the organization and offering of a number of private funds of hedge funds. We also advised Commonfund, which offers nonprofit institutional investors a range of investment funds, on issues associated with the expansion of its services to new client segments, including benefit plan investors and non-U.S. investors.
- Stockbridge Partners LLC, an affiliate of Berkshire Partners LLC, in connection with the establishment and operations of Stockbridge Fund, L.P., a hedge fund applying the investment philosophy developed by Berkshire Partners in its private equity investing to investments in marketable securities.
- Archview Investment Group in connection with the organization and offering of its initial hedge fund, a credit opportunities fund, and its registration with the SEC as an investment adviser. Archview is a recently established hedge fund manager in New York with more than $300 million under management.
- Represented UBS Wealth Management Americas in the formation of numerous aggregation vehicles to allow U.S. high-net-worth individuals to invest in large hedge funds, real estate funds and private equity funds.
- Represented a leading hedge fund manager and registered investment adviser with respect to its planned restructuring of its core domestic fund and in connection with its initial SEC examination as a registered investment adviser.
Our representative clients include:
- Allianz Funds
- Angelo Gordon
- Arbalet Capital LLC
- Archon Partners LLC
- Archview Capital LLC
- Arrowstreet Capital LP
- Blackstone Alternative Asset Management
- Bracebridge Capital LLC
- Bridger Capital LLC
- Caspian Capital Management LLC
- Commonfund Asset Management Company, Inc.
- Costa Brava Partnership III LP
- CVC Credit Partners Ltd
- Development Capital Partners LLC
- Discovery Capital Management LLC
- Emrys Partners LP
- Episteme Capital Partners US LLC
- Equinox Asset Management LLC
- Franklin Templeton Institutional
- Grantham Mayo Van Otterloo & Co. LLC
- Grosvenor Capital Management
- Highside Capital Management
- Jamison Capital Partners
- Kensico Capital Management Corp.
- Maverick Capital Ltd.
- Och Ziff Capital Investments LLC
- Pacific Investment Management Company
- Partner Fund Management LP
- Providence Equity Partners LLC
- Ramius Alternative Solutions
- Sansar Capital Management
- Schroder Investment Management North America Inc.
- Stockbridge Associates LLC
- Tech Square Partners
- Tiger Management LLC
- Tudor Investment Corporation
- Western Asset Management
- Willowbridge Asset Management
- Zais Group LLC
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“This firm has dexterously directed its focus toward the major shifts in the hedge funds industry . . . . It is praised for its exemplary client service.”
Chambers USA