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While hedge funds are in the midst of reevaluating their investment strategies and overall financial viability, fund-of-funds managers are seeing an uptick in their ability to raise capital. In the first six months of 2009 alone, fund-of-funds managers have raised approximately $5.1 billion in capital to invest in private equity, venture capital and real estate vehicles.
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This impressive growth reflects the reduced risk, greater diversity and the promise of net returns higher than the average hedge fund. Investors may now be more willing than ever to invest in fund-of-funds for the security, investment structure and analysis they offer. The time is right for fund-of-funds to work with an advisor who can help them leverage their strengths.
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Rothstein Kass is not only a major accounting firm serving hedge funds and fund-of-funds but is also a thought leader in analyzing the economic and industry trends and issues impacting our clients. As an advisor, we can offer insight into all the latest strategies and financial instruments available. Our financial services group has over 20 years of experience serving domestic and offshore hedge funds, fund-of-funds, and private equity funds and commodity pools. Our diverse client base includes both start-ups and large institutional funds
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| How We Can Help: |
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| Our Firm has the experience and technical resources committed to helping our clients accomplish their objectives. Our resources enable us to minimize the general partners’ involvement in accounting and tax matters, so that they can concentrate on investment performance. |
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| Start Up Services and Partnership Organization |
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| For start-ups, having a knowledgeable advisor is critical to their success. Rothstein Kass has worked with thousands of well-known funds in their earliest stages to their most established current stages. We understand all the operational and performance issues that must be considered and can advise you along every step of the start-up process. |
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| At the inception of the partnership, we work as a team with the general partners and their counsel to review and assist in the formation of the partnership agreement and private placement memorandum, and determination of the following: |
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Organizational structure |
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Management fee and incentive allocation structure |
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Investor liquidity requirements |
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Management company’s operating cash requirements |
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Management company’s staff requirements and back office structuring |
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Risk Management |
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Financial Services Advisory |
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| Audit and Accounting |
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Advice regarding operational techniques |
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Year-end audit of financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) or International Financial Reporting Standards (IFRS) |
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Examination report of investment performance statistics to assist investment managers in marketing and packaging their track record |
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Consultation regarding regulatory issues |
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| We also offer these specialized and in-demand services to provide greater assurances to your stakeholders: |
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Financial Services Advisory |
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SAS 70 Reports |
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Internal Control reviews |
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Monthly / Quarterly Agreed Upon Procedure Reports (AUPs) for the verification of Assets |
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Semi-Annual Audited Balance Sheet to provide additional assurance regarding valuation of existing assets |
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Fee structure reviews |
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| Tax Services |
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| Investment funds have complex tax issues. Our professionals are experienced and highly trained in securities taxation. |
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Responsive and creative tax planning with respect to securities transactions to ensure optimum tax benefit |
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Preparation of Federal, state and local fund income tax returns |
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Preparation of tax returns for the management company and general partner |
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Preparation of federal, state, and personal tax returns of the owners of the general partner and management company entities |
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Provide estimates of taxable income to the General Partner or Investment Manager to manage the expectations of their investors |
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Representation before the Internal Revenue Service and any other agencies |
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Assisting in the implementation of procedures to evaluate and monitor uncertain tax positions required by Fin 48, Accounting for Uncertain Tax Positions (UTP’s), including assistance in the evaluation of UTP’s on their technical merits. |
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