Choosing the Right Vendors
Articles by: Richey May, Aug 20, 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:
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.