Before launching a closed-end investment vehicle, such as a private equity real estate fund, managers typically seek to gauge investor interest and obtain soft, non-binding commitments from potential investors. A successful launch of an investment fund depends heavily on the manager's ability to properly garner a critical mass of pre-launch soft commitments, that is, nonbinding expressed interest in the forthcoming fund offering.  ..read more

Venture capital funds are diverse and often distinguished by their various strategies, areas of focus, and business practices.  Managers can differ significantly in their approach and involvement with the portfolio companies, with many choosing to provide substantial operational guidance, support, or shared services. Venture capital funds often focus their investment strategy on particular geographies, technological capabilities, or business models.  ..read more

It is essential for managers to understand the structure of their fund, as it will impact tax-related matters, as well as the contents of the internal and offering documents, such as appropriate terms, disclosures, and the specific responsibilities of the manager and the general partner. Our law firm works with managers as an extension of their management team to develop the structure, terms, and capital raising disclosure documents necessary for the fund formation and launch, setting the foundation to operate and grow the venture capital fund successfully ..read more

Investment terms are driven by the fund’s strategy, the market trends within the fund’s sector or target capitalization stage, and the specific needs and objectives of the fund. When properly prepared, the fund’s documents and terms should appropriately protect the manager. A manager’s legal counsel must understand current investment market trends and how those trends impact the fund's strategy ..read more

Not all hedge fund managers are subject to investment adviser registration. To determine whether a fund manager needs to register, we ask our clients the following five questions: 1. Will the fund invest in "securities?" 2. Will the manager advise separately managed accounts? 3. What will be the size of the fund? 4. In what state is the fund management team physically located? 5. In what states are the investors located?   ..read more

Originally published in Nasdaq.com. NFT’s (Non-fungible tokens) are in vogue, and they are what’s trending in the crypto economy. While it is a fairly new phenomenon, they continue to increase in popularity. With that, a new crop of investors have entered a world that has, for the most part, been viewed as untouchable and esoteric ..read more

For a manager without previous fund management experience or ready access to initial investor capital, an incubator fund provides a cost effective way to begin building a marketable performance record using the manager’s personal funds.  An incubator fund allows a manager to fine-tune the trading strategy while creating a marketable track record ..read more

In the ever-evolving and developing age of virtual currencies, fund managers of digital asset-focused funds have the additional challenge of not just trying to keep up with securities regulations on the state and federal levels, but proactively anticipating new regulations, through the guidance of their legal counsel, in order to maintain their fund’s compliance long-term. Investors in Bitcoin and other forms of digital assets find themselves at the distinct disadvantage of having to navigate through a convoluted set of rules, adding to the already complex process of fund formation and i ..read more

On December 8, 2020, final amendments to the Securities and Exchange Commission’s (“SEC”) accredited investor definition will go into effect. What does this mean for private fund managers? It depends. Continue reading for an overview of several noteworthy adoptions to the SEC’s definition expansion ..read more

John Lore, managing partner of Capital Fund Law Group, joined Alyne on The Reg Tech Report to discuss investment strategies and the current investment ecosystem in RegTech, specifically in the U.S.   During this informative Podcast, Mr. Lore offers insights on PE and VC investment activity and strategies, from broad activity to specific tech segments, and how the compliance industry continues to grow as regulations continue to expand ..read more