Comprehensive Counseling for Private Fund Advisors

When forming an entity, a private fund adviser should consider various factors. These factors could include the amount of money to be managed, whether the company will handle futures or other commodity interests, who the initial investors in the company will be, and the terms of the investment. Consulting an investment funds specialist or commodity trade advisor would be a wise decision. MAH Advising, LLC (“MAH”) is one of the top fund formation advisory firms with a wide range of commodity trading expertise.

Fund formation professionals and commodity trading advisors at MAH can provide private fund advisory services such as:

• Establishing corporations in Delaware, California, and other states
• Completing SEC, state, and Exempt Reporting Adviser (ERA) registrations
• Registering as a Commodity Trading Adviser or Commodity Pool Operator with the NFA
• Providing advice on seed capital
• Offering advice on how to handle important contingencies, such as future valuation, put and call provisions, death, disability, withdrawal, or termination of a principal
• Addressing crucial regulatory compliance issues for the organization’s infrastructure and compliance program

Fund Structures and Third-Party Service Agreements

If a fund is structured improperly or if third-party service agreements have not been carefully managed, a private fund could struggle under its own expenses. A private fund must also be structured so that the investment strategy and various fund features appeal to the most discerning investors. The team of commodity trading advisors and fund formation professionals at MAH is qualified to discuss the relevant practical considerations of:

• Limited Liability Companies (LLCs) and Partnerships (LLCs)
• Side-by-side funds (onshore and offshore) and master-feeder funds
• Commodity pools
• Minimum investment requirements
• Investment advisory and performance-based fees
• Unusual situations: side pockets, in-kind redemptions, and special allocations
• Acceptance of ERISA investors
• Unrelated business income tax
• Custody, management, audit & tax, and prime brokerage
• Securities lending agreements and international swaps and derivatives (ISDA)
• Market data, trading, valuation, and trade analytics
• Insurance for D&O and E&O

Securities and Commodity Regulations

The rules governing private funds are complicated. When a private fund adviser violates the complex web of securities and commodity regulations, even unintentionally, investors have strong recourse available to them. We can offer guidance on the following subjects:

• Private funds under sections 3(c)(1) and 3(c)(7) of the Investment Company Act of 1940
• Private placements under Regulation D
• Activities triggering broker-dealer registration
• JOBS Act and crowdfunding
• Limitations on performance fees
• Form PF
• Regulation S-ID
• NFA registration exemption for de minimis positions
• Registration lite
• Complete NFA registration as a Commodity Trading Adviser/Commodity Pool Operator
• NFA registration of related individuals

Protection of Intellectual Property and Other Employment Contracts

The collective strength of employee efforts and diligence is a proven way for the private fund adviser to increase competitive strength. Your customers are the heart of your company, and your investment strategy sets you apart. Private fund advisers frequently neglect to put safeguards in place to protect intellectual property. Your company could be damaged if no such safeguards exist. It is beneficial to establish expectations with your staff early on.

MAH can help by providing tailored:

• Agreements on confidentiality and intellectual property assignment
• Procedures for dealing with intellectual property
• Training to increase understanding of confidentiality
• Compensation packages for portfolio managers and sales representatives
• Guidance on non-solicitation and non-compete clauses

Protect Yourself from Broker Misconduct

The sooner you address unauthorized trading in your account, the better your chances are of resolving the issue successfully. MAH has a team of specialists who can help identify signs of unauthorized trading and other forms of broker misconduct and provide professional guidance on next steps.

Are you looking for fund formation advisory?

Reach out to the team of investment funds professionals at MAH. For additional help or information related to Private Funds, talk to the team of commodity trading advisors here at MAH Advising LLC. Our team has extensive experience with matters related to Private Funds and acts as CTA commodity trading advisors.