Choosing the Right Vendors

Blog Post Choosing the Right Vendors

Choosing the Right Vendors

August 2019

If you’re starting a hedge fund and curious about how to choose your supporting network of service providers, the following article from Bobsguide provides an excellent starting point in your journey:

https://www.bobsguide.com/guide/news/2019/Aug/5/starting-a-hedge-fund-how-to-choose-your-vendors/

 

When looking for a reliable and independent partner, you should consider the following key takeaways from this article:

  • Lawyers: Do you have the need for multi-jurisdiction reach, or knowledge of special structures?
  • Auditors: Do they have a strong knowledge of different hedge fund structures and strategies?
  • Administrators: Can they scale up to meet the needs when your operations grow?
  • Prime broker: In addition to offering an excellent trading platform, can they accommodate securities lending and financing or capital introduction?
  • Third-party marketers: Are they well-connected to reach your target market?
  • IT and technology providers: Adequate technology infrastructure at inception would help meet increased investor due diligence and gain competitive edge. The performance of the technology vendors can be compared based on the following criteria:
    • Features and functions
    • System deployment
    • Total cost of ownership
    • Service and support

 

The right vendor partners provide a competitive edge and can support the growth of your operations in multiple ways. If you have questions about starting up a hedge fund, Richey May’s professionals in the Alternative Investments practice are available to help. For more information, please contact Stephen Vlasak.