Fund Formation Capabilities

Our fund formation practice covers a variety of private funds, including real estate funds, hedge funds, fund of funds, committed funds, pledge funds and a variety of hybrids. In addition to our real estate fund formation work, we have represented clients in the formation of hedge funds with assets under $100 million with a variety of strategies, as well dozens of private equity firms and sponsors in the formation of funds ranging from less than $50 million to over $250 million.

Over the years, we have represented a diverse group of fund sponsors and fund investors interested in forming or investing in a variety of private funds such as buyout, venture, mezzanine, distressed businesses, hedge, real estate, secondary, hybrids and fund of funds.

Benesch has also advised numerous clients in the past three years on fund formation matters through various stages which are in process. These include clients who were interested in pledge funds, committed funds, fundless sponsor arrangements and other hybrid arrangements (including a captive fund).

Fund Formation Services

We assist clients with the following aspects of fund formation:

• Determining the proper structure
• Advising on current market terms and conditions
• Preparing the offering materials
• Negotiating with prospective investors
• Negotiating and documenting arrangements with placement agents
• Preparing partnership and LLC agreements
• Tax counseling
• Review and drafting of organizational documents
• Advising on and documenting management and compensation arrangements
• Advising on fiduciary obligations
• Negotiating side letters
• Advising on compliance rules and regulations of the SEC, FINRA and other regulatory agencies
• Advising on state and federal securities law compliance matters
• Closing fund formation transactions