Formation Fund Formation
SADIS&GOLDBERGLLP
PreparedFor:AnjeloAustria
60-80
Onaverage,Private Fundscreatedand launchedannually
ABOUT SADIS
Sadis&GoldbergLLPisaglobally recognizedlawfirm. Drawingontheexperienceanddepthofourteam,weleverage eachlawyer’sindustry-specificknowledgetohelpourclients succeed.Thiscollaborativeapproachbringscollectiveinsight tothetablethatcontributestosensible,efficientresolutions, andallowsustoremainattentivetocostandtimesensitivities.
21 Countrieswith representedclients
#3
PreqinRankedforLaw FirmsServicingHedge Funds in theU.S.
#7
PreqinRankedforLaw FirmsServicingHedge FundsWorldwide 11
Sadisclientsincludefinancialinstitutions,familyoffices, venturecapitalfunds,hedgefunds,privateequityfunds, buyoutfunds,commoditypools,specialpurposevehicles, strategicandfinancialbuyers,independentsponsors,domestic andinternationalcompanies,andnumerousothertypesof businessesoperatinginvariousindustriesaroundtheworld.
INDUSTRY INVOLVEMENT
IndependentSponsors –Sadishostsnetworkingeventsto connectcapitalprovidersandindependentsponsors,including twomajorconferenceseachyear
EarnoutMagazine–Sadispublishesaquarterlymagazine, targetingfinancialservicesprofessionals,withafocuson independentsponsorsanddealmakers.
Sadis Business Breakfast – Sadis brings together investors, founders, analysts, capital providers, service providers and other businessleaderstodiscusstrendingtopicsandtonetwork.
Sadis Family Office Dinners – Sadishostsexecutives from family officestonetwork and share ideas on markettrends.
SadisAnnualPrivateFundsForum –Industryleadersfromlaw firms,accountingfirms,third-partyadministrators,directorsand consultantsfocusedontheprivatefundsindustrygather togetherforseveraldaysfromacrosstheglobetoshareideas anddiscussrecentdevelopmentsfacingthefinancialservices industry.
FOCUSED SOPHISTICATED REPRESENTATION
Sadis maintains a diverse, business-oriented practice focused on private investment funds, asset and wealth managers, family offices, litigation, corporate, mergers & acquisitions, real estate, regulatory and compliance, tax and ERISA.
“No law firm is better in the hedge fund space. Sadis doesn’t just know the legal framework; they are on the cutting edge of defining it.”
– JOHN STERLING FOUNDER, STERLING FUND MANAGERS
INVESTMENT FUNDS
The Investment Funds practice has represented private funds clients for almost 30 years, playing aprominent role in the development of the private funds industry and earning usaunique leadership role in th closely with lawyers in the Firm’s other practice areas, our team provides comprehensive advice to many of the world’s best-known institutionalalternative assetmanagers, aswellassmallerfirst-timefundmanagersandindependent boutiques.
Our clients include the full spectrum of investment funds, such as private equity, hedge, real estate, venture capital, registered mutual funds (both open-end and closed-end) and UCITS funds, sponsored by some of the highest-profile global fund managers. We work extensively either with or opposite each major category of private fund investors, including corporate, public and private pension plans, families, foundations and endowments, funds-of-funds, sovereign wealthfundsandquasi-governmentalorganizationinvestors.
HEDGE FUNDS
TheFinancialServicesGroupatSadisprovideslegal advicetobothdomesticandoffshoreprivate investmentfundsinthealternativeinvestmentspace. Weprovidecounselonthestructureandformationof newfunds,aswellasthereorganizationand restructuringofexistingfunds.Westructureand serviceawidevarietyoffunds,suchaslong/short equityfunds,globalmacrofunds,emergingmarket funds, riskarbitragefunds,convertiblearbitrage funds,highyieldbondfunds,distresseddebtfunds, bankdebtfunds,sector-specificfunds(e.g. technology,Internet,healthcare,biotechnology), collectiblefunds(e.g. car,art,watch),crypto-currency funds,cannabisfunds, fund-of-funds,multi-manager fundsandfundplatforms. Weprovidecustomized draftingofconfidentialprivateplacement memoranda,limitedpartnershipagreements, operatingagreements,subscriptiondocuments and otherrelatedfunddocuments.
Wealsodraftandnegotiateagreements documentingtherelationshipwithfundmanagers, principalsandemployees,sub-advisors,consultants andothercounterparties.Sadiscurrentlyrepresents hundreds ofprivateinvestmentfundswithmanagers throughouttheworld.Ourclientsincludemanagers andfundsof allsizes,backgroundsandinvestment sectorsandourclientbaserepresentsasignificant percentageoftheprivatefundindustry’smarket share,providingtheFirmwithanunusualawareness ofcurrentmarketbehaviors,favoredcommercial termsandotherindustrytrends.Thisuniqueaccess tocurrentmarketinformationallowsourteamto provideourclientswithbothexperiencedlegal counselandtimelybusinessintelligence.Byvirtueof representingseveralhundredalternativeinvestment vehicleswithinvestmentmanagersdomiciled
throughouttheworld,ourmarketsharegives usauniqueperspectiveontheglobalinvestment fundsindustry.
Additionally,asaresultofouruniqueglobal footprint,weenjoyverystrongrelationshipswith leadinglegalcounselandotherprofessionalsin internationalcentersforonshoreandoffshore finance,suchastheCaymanIslands,Bermuda,the BritishVirginIslands,Luxembourg,Ireland, Switzerland,Malta,Jersey,Guernsey,Mauritius, HongKongandtheUnitedKingdom.Inaddition, wemaintainaspecializedcross-borderfunds practicetargetingnon-U.S.managersseeking tooffersecuritiesandlaunchproductsinthe UnitedStates,includingclientsinIreland,theUK, theNetherlands,Canada,China,Singapore, France, Luxembourg,GermanyandSwitzerland.
Ourclientbaserepresents asignificantpercentageofthe privatefundindustry’smarket share,providingtheFirmwith anunusualawarenessof currentmarketbehaviors, favoredcommercialtermsand otherindustrytrends.
REGULATORY & COMPLIANCE
OUR REGULATORY AND COMPLIANCE TEAM ADVISES FUNDS AND THEIR MANAGERS ON ALL OF U.S. REGULATORY ASPECTS OF THEIR BUSINESS INCLUDING THE FOLLOWING:
• SecuritiesandExchangeActof1934.Weadviseclientsonbroker-dealerlawsapplicabletotheirsellingactivities andregularlynegotiateprivateplacementanddistributionagentswithsellingagents.Ourregulatoryadvice coversallaspectsofbroker-dealerlaws,includingFINRArulesandregulationsandlicensing.
• SecuritiesActof1933.Weprovideareviewofthebasisfortheprivateofferingtotheinvestorandthatthefund fileaFormDwiththeSECtoavailitselfoftheprivatesecuritiesofferingsafeharborunderRule506(b)orRule 506(c)(noteRule506(c)offerings,whichpermitpublicmarketing,requireadditionalduediligencebythe managerandsoadditionalworkonthesubscriptiondocuments).
• InvestmentAdvisersActof1940.Togetherwithfundmanagementwereviewapplicableexemptionsthatmay beavailabletoitundertheAdvisersAct,includingtheforeignprivateadvisersexemption,venturecapital exemptionandprivatefundadvisersexemption.Inaddition,wehandleallregulatoryfilingswiththeSEC, includingany“exemptreportingadviser”filingsandfullregistrationswiththeSEC,includingthedraftingof CodesofEthicsandComplianceManuals.
• InvestmentCompanyActof1940.IntheeventanyfeederfundsareformedinordertoconductaU.S.offering, wewouldadviseontheregulatoryexemptionsavailabletothefundundertheInvestmentCompanyAct, includingthe3(c)(1),3(c)(5)and3(c)(7)exemptions,aswellasinvestorduediligenceobligationsimposedonthe managertodemonstratecompliance.
• CommodityExchangeActRegulation.Inaddition,weassessanyfilingobligationsundertheCommodity ExchangeAct(applicabletocommodities,currenciesandswaps),includinganycommoditypooloperator (CPO)andcommoditytradingadviser(CTA)filings.Abroadexemptionfromregistrationexistsforlowlevelsof activitiesintheseinstruments,andstandardexemptionsexistforofferingsinprivatefunds.Theexpense associatedwithmakingtherelevantfilingswouldbeminimalforthebroadexemption,andrelativelylow forthestandardprivatefundexemptions,thoughpreviouslyunregisteredCPOsandCTAswouldneedto completenewregistrationswiththeNationalFuturesAssociation.
• EmployeeRetirementIncomeSecurityAct(ERISA).Foroffersofsecuritiestopensionplansorotherinvestors whoseassetsconstituteplanassetsunderU.S.law,wewouldadviseontheobligationsimposedunderERISA andtheguidelineswhichthefundshouldfollowinrespectofERISAinvestorstoensurethatthefunddoesnot becomeafiduciaryofanyERISAplaninvestor.
• MockAudits.WeregularlyconductSEC&FINRAmockauditsandfocusedcompliancereviewsonbehalfofour clients.Thesereviewsandauditsencompassareviewofcompliancepoliciesandproceduresthatarerequired tobemaintainedbyaclientunderfederalandstatesecuritieslaws.Ourteamleveragesitsmultidisciplinary expertisetoprovideinsightintobestpracticesfromacompliance,enforcementandbusinessperspective.
FUND STRUCTURING AND COSTS
ThelegalservicesinconnectionwiththeformationofaU.S.domiciledprivateopen-endhedgefund(“U.S.Fund”)utilizinga fundamentalUS focusedtechnologylong/shortequitystrategy,willbeprovidedbyateamofexperiencedSadisPartnersand willincludeguidanceinconnectionwithtax,ERISAandregulatorycompliance. Webelievethatourteam’sholisticapproach resultsinafarbetterexperienceforourclientsandbetter-qualityworkproduct,whichultimately,reducesyourriskand enhancesyouropportunitytogrow. Alsonoteworthy,Sadishasfewerconflictsofinterestwhencomparedtoourpeergroup.
Fee
InconnectionwiththeorganizationoftheU.S.Fundwechargeafixedfeeof$35,000(“FixedFee”)plusoutofpocket expenses. Outofpocketexpensesincludestheformationandqualificationcostsofcorporateentities,blueskyfilingfees chargedbyeachstate,aswellascostsassociatedwithconductingbackgroundcheck(s)toensurethattherearenocivilor criminalcomplaints.Sadisisnotcompensatedbynoraddsanyfeeorcosttoanythird-partyexpenseandinalmostallcases, youwillpaythethirdpartydirectly.
FixedFeeServices
ServicesincludedintheFixedFeeare(i)(a)structuringtheU.S.Fund,and(b)structuringmanagemententitiesorreviewingthe structureofexistingmanagemententities,focusingonmitigatingtaxliabilitiesandclarifyingregulatoryobligations,(ii)drafting theconfidentialprivateplacementmemorandum,limitedpartnershipagreementandsubscriptiondocuments,(iii)introducing appropriateserviceproviders(uponrequest)andcoordinatingwiththeU.S.Fund’sserviceproviders,includingtheauditorand administrator,(iv)draftingblueskynoticefilingsintheU.S.whereinvestorsreside,(v)draftingstandardizedagreementsfor themanagemententities,and(vi)providinggenerallegalguidance.Pleasenotethatthroughthisprocesswecoordinateall draftswiththeclientanddiscuss,totheclient’ssatisfaction,thestructureandtermsoftheofferingdocuments.
Timing
Inconnectionwithdraftingtheofferingdocuments,weexpecttocompletetheU.S.Fundwithinapproximately4-6weeks fromdateofengagement.
Our Team
Sadis&Goldberg’steamisexceptionally experiencedinventurefundformationand mergersandacquisitions.OurFirm's Partnershavedecadesofexperience,both atSadis&Goldbergandatlarger internationallawfirms,aswellasattheU.S. SecuritiesandExchangeCommission(“SEC").
OUR TEAM
Ron S. Geffner PARTNER
212.573.6660
rgeffner@sadis.com
RonS.GeffnerisafoundingmemberoftheFirm’s ExecutiveCommitteeandalsooverseestheFinancial ServicesGroup.Heregularlystructures,organizesand counselsprivateinvestmentvehicles,investmentadvisory organizations,broker-dealers,commoditypooloperators andotherinvestmentfiduciaries.Ronalsoroutinely counselsclientsinconnectionwithregulatory investigationsandactions.Hisbroadbackgroundwith federalandstatesecuritieslaws,andtherules,regulations andcustomarypracticesoftheSEC,theFinancialIndustry RegulatoryAuthority,theCommoditiesFuturesTrading Commissionandvariousotherregulatorybodies,enables himtoprovidestrategicguidancetoadiverseclientele.He provideslegalservicestohundredsofhedgefunds,private equityfundsandventurecapitalfundsorganizedinthe UnitedStatesandoffshore,aswellasthemanagersof suchfunds.
Ron regularly structures, organizes and counsels private investment vehicles, investment advisory organizations, brokerdealers, commodity pool operators and other investment fiduciaries.
PriortostartingSadis&Goldberg,Ronwasassociatedwith twootherNewYorkCity-basedlawfirms,wherehe representeddomesticandoffshoreprivateinvestment vehicles,aswellasbroker-dealers,registeredinvestment advisersandregisteredinvestmentcompanies.
OUR TEAM
Yehuda M. Braunstein
PARTNER
212.947.3796
ybraunstein@sadis.com
YehudaM.BraunsteinheadsuptheFamilyOfficePractice andisalsoamemberofthefirm’sFinancialServicesand CorporateGroups. Yehudacounselsfamilyofficeclientsin connectionwithallaspectsoftheiroperations,including formationissues,governanceandcompensationissues, transactionalanddaytodaymattersaswellascompliance issues.
Yehuda’spracticealsofocusesoninvestmentfunds, securities,jointventures,regulatorycomplianceand investmentadvisers. Heregularlystructuresandorganizes hedgefunds,privateequityfunds(includingrealestate, distressedandlendingfunds),funds-of-funds,separately managedaccountsandhybridfunds. Additionally,headvises privatefundmanagersonstructure,compensation, employmentandinvestorissues,andothermattersrelating tomanagementcompanies.Yehudaalsostructuresand negotiatesseedinvestmentsandoperatingagreements.He providesongoingadvicetoinvestmentadvisersonsecurities lawissues,includingSECfilings. Hispracticealsoinvolves counselingclientsinSECregulatorymatters,including complianceissuesrelatedtoregisteredadvisers, aswellas conductingmockaudits.
Yehudaregularly structuresand organizeshedge funds,privateequity funds(includingreal estate,distressed andlendingfunds), funds-of-funds, separatelymanaged accountsandhybrid funds.
OUR TEAM
Paul D. Fasciano PARTNER
212.573.8025
pfasciano@sadis.com
PaulD.FascianoisaPartnerintheFirm’sFinancialServices andCorporateGroups.Paulbeganhiscareerasageneral corporateattorney,andnowfocuseshispracticeon representingprivatefundmanagers,bothintheformation phaseandalsoinvariousongoingcorporateand transactionalmatters,includingmergersandacquisitions, activistinvestorrepresentation,securitieslawcompliance andderivatives.
Paulregularlycounselsclientsonstructuringandforming U.S.andnon-U.S.privateinvestmentfunds,includinghedge funds,privateequityfundsandcustom“hybrid”funds incorporatingfeaturesofboth.FundsadvisedbyPaulcover awidevarietyofstrategiesandassetclasses,withvarying liquiditycharacteristics,includingmoretypicalassetclasses suchaspubliclytradedequities,aswellaslesstypicalasset classessuchasloans,consumerreceivablesandrenewable energycredits. Paulalsohasextensiveexperiencein draftingandnegotiatingagreementsmemorializingthe relationshipbetweentheprincipalsofafundmanager.
Paulhasadvised participantsina varietyofpublicand privateM&A transactionsin diverseindustries, including transactions involvinginvestment advisers,brokerdealersandother playersinthe financialservices industry.
OUR TEAM
David Fitzgerald PARTNER
212.573.8428
dfitzgerald@sadis.com
DavidFitzgeraldisaPartnerintheFirm'sFinancialServices andCorporateGroups.David'spracticefocuseson investmentfunds,securities,jointventures,regulatory complianceandinvestmentadvisers.Heregularly structuresandorganizeshedgefunds,privateequityfunds, funds-of-funds,separatelymanagedaccountsandhybrid funds. Additionally,headvisesprivatefundmanagerson structure,compensation,employmentandinvestorissues, andothermattersrelatingtomanagementcompanies.
Drawingonhis16yearsofexperienceasaninstitutional ChiefComplianceOfficerandGeneralCounsel,David providesongoingadvicetoinvestmentadviserson securitieslawissues,includingSECfilings. Hispracticealso involvescounselingclientsinSECregulatorymatters, includingcomplianceissuesrelatedtoregisteredadvisers.
David hasprior experienceasan institutional ChiefCompliance Officerand GeneralCounsel.
OUR TEAM
Seth Lebowitz PARTNER
212.573.8152
slebowitz@sadis.com
SethLebowitzisaPartnerintheFirm’sTaxGroup. Sethadvisesclientsonthetax-efficientplanning andexecutionofabroadrangeoftransactions,witha particularfocusontheformation,operationand investingactivitiesofprivateequityfundsandhedge funds.
Specifically,Sethhasexperiencewith:
• Domestic and international tax issues relating to fund structuring
• Joint ventures and partnerships
• Corporate and real estate investing
• Lending
• Securities trading
• Distressed investing
• Financial products.
Sethadvisesclients onthetax-efficient planningand executionofabroad rangeoftransactions, withaparticularfocus ontheformation, operationand investingactivities of privateequityfunds andhedgefunds.
OUR TEAM
Alex Gelinas COUNSEL
212.947.3793
agelinas@sadis.com
AlexGelinasisaSeniorCounselintheFirm’sTaxGroup. Alexfocuseshispracticeonprovidingtaxadviceto investmentmanagersofhedgefunds,privateequityfunds andotherinvestmentfundswithrespecttoallaspectsof theirbusinesses,includingmanagemententityandfund formation,partnershiptaxationissues,compensation arrangementsandongoinginvestmentactivitiesand transactions.AlexalsoprovidestaxadvicetoU.S.pension funds,sovereignwealthfundsandotherU.S.andforeign institutionalinvestorsinconnectionwiththeirinvestments inprivateequityfunds,hedgefundsandjointventures.He alsohasextensiveexperienceinprovidingtaxplanning advicetohigh-net-worthindividualsandfamilies.
Alex has extensive experience with respect to the “plan assets” and other ERISA regulatory issues applicable to sponsors of, and institutional investors in, onshore and offshore hedge funds, private equity funds and other pooled investment vehicles.
OUR TEAM
Yelena Maltser PARTNER
212.573.8429
ymaltser@sadis.com
YelenaMaltserisaPartnerintheFirm’sFinancialServices andCorporateGroups.Yelenaregularlycounselsclientson structuringandformingU.S.andnon-U.S.private investmentvehicles(including,withoutlimitation,hedge funds,privateequityfunds,hybridfunds,fundswithnontraditionalassetclasses,realestatefunds,venturecapital funds,funds-of-funds,commoditypools,aswellas managedaccounts). Yelenaalsoadvisesclientson structuringthemanagemententitiesofsuchfunds. She regularlypreparesofferingandorganizationaldocuments forinvestmentfunds;negotiatessideletteragreements, seedcapitalagreements,jointventureagreementsand compensationarrangements;reviewsmarketingmaterials; andprovidesongoingadvicetoexistinginvestmentvehicles andmanagemententities. Inaddition,Yelenacounsels investmentmanagersonregistrationandongoing regulatorycomplianceissues.
PriortojoiningSadis&Goldberg,Yelenawasassociated withtwootherNewYorkCity-basedlawfirms,whereshe wasinvolvedingeneralcorporatework.
Yelenacounsels clientsonstructuring andformingU.S.and non-U.S.private investmentfunds,as wellasthe managemententities ofsuchfunds.
OUR TEAM
Mark Strefling PARTNER
212.573.8519
mstrefling@sadis.com
MarkStreflingisaPartnerintheFirm'sFinancialServices Group.Markisrecognizedasanindustry-leadinginvestment managementlawyerwithovertwodecadesofexperiencein thealternativeinvestmentsindustry.
Mark’spracticeincludesthespecializedrepresentationof privatefundmanagersinthedesignandformationof complexandinnovativefundstructures,themarketingand distributionoffundinterests,thedesignofcomprehensive complianceprograms,andtherepresentationofmanagers duringcriticalregulatoryexaminationsandinvestigations. Markalsopartnerswithmanagerstodelivercompliance trainingandeducation,mockexaminations,regulatoryand compliancegapanalysis,andcriticalCCOregulatory support.
Mark represents private fund managers, investment advisers, and other members of the investment management industry on fund structures, and compliance matters.
OUR TEAM
Erika L. Winkler PARTNER
212.573.8022
ewinkler@sadis.com
ErikaL.WinklerisaPartnerintheFirm’sFinancialServices andCorporateGroups.Erika’spracticefocusesonthe structuringandformation,capitalraisingandregulatory complianceofU.S.andnon-U.S.privateinvestmentvehicles, including,withoutlimitation,hedgefunds,privateequity funds,hybridfunds,fundswithnon-traditionalassetclasses, realestatefunds,venturecapitalfunds,specialpurpose vehicles,funds-of-funds,commoditypools,aswellas managedaccounts.Shealsoregularlyadvisesmanagement companiesandfundmanagersonawidearrayofmatters, includingcompensationstructures,restructuringsand reorganizations,jointventures,sidelettersandseed capitaltransactions,andemploymentandinvestorissues, andnegotiatesandpreparesrelatedagreementsand documentation.
Erika’s practice focuses on the structuring and formation, capital raising and regulatory compliance of U.S. and non-U.S. private investment vehicles.
OUR TEAM
Jacob Shiffer ASSOCIATE
212.573.8027
shiffer@sadis.com
JacobShifferisanAssociateintheFirm’sFinancialServicesandCorporateGroups.Jacob's practiceincludes privatefundformation,mergersandacquisitions,andgeneralcorporate matters.
PriortojoiningSadis,JacobservedintheUnitedStatesAirForceforeightyears,wherehe workedasanAnalyst.
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