03 May 2022
Hedge or Hybrid? Choose the Right Fund Type for Your Investors
With the private funds investor landscape becoming increasingly competitive, and with sophisticated investors expecting the liquidity of their fund investments to match the liquidity of the fund's underlying investments, hedge fund firms are looking for ways to innovate and offer investors more choice, flexibility, and returns. To that end, an increasing number of firms are launching hybrid funds, which are private investment vehicles that have attributes of both traditional hedge and private equity funds.
This practice note discusses the key differences between hedge fund and hybrid fund structures, and the factors that fund sponsors and their counsel should consider when evaluating the type of fund structure and strategy to pursue.
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Related Content
- Hedge Fund and Its Offering: Drafting and Reviewing the Key Documentation
Read this practice note describing the key documents that are drafted and negotiated before and during the offering of interests in a new hedge fund.
- Regulation of Hedge Funds and Their Trading Activities
Review this overview of the most important regulations affecting the trading activities of hedge funds under U.S. federal securities laws.
- Operating Agreement (Hedge Fund) (Delaware LLC)
Consult this basic legal agreement which governs the rights and obligations of the investors and the manager for a hedge fund organized as a limited liability company (LLC).
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