Who We Are
Hedge Fund Formation
Wabash Advisors is comprised of a cross-functional team of accounting, hedge fund attorneys, fund administration and capital markets consultants. With over 35 years of combined hedge fund formation experience, Wabash Advisors has orchestrated the formation of over one hundred hedge funds. Our layered approach starts with creating immersive corporate structures most suitable for each asset class and asset management and investment strategy.
We follow with developing best-in-class investor materials including Wall Street-caliber offering memorandum and investor pitch decks. Asset managers across a wide swath of asset classes – from equity and debt to real estate and even cryptocurrency, have relied on Wabash Advisors not only for their hedge fund formation requirements, but also for capital markets consultancy and ongoing hedge fund administration services. We serve asset managers of all sizes, from startup and incubator stage to funds with assets under management in excess of $150 million. Trust Wabash Advisors for your hedge fund formation and fund administration needs
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Frequently Asked Questions
In order to avoid registration under the Investment Company Act of 1940, there are two exemptions primarily relied upon by hedge funds. First, Section 3(c)(1) hedge funds are limited to one hundred (100) investors, thirty-five (35) of which can be non-accredited investors. Next, a 3(C)(7) fund is only open to an unlimited number of “qualified purchasers” – either an individual with a minimum of $5 million in net investment or an entity with a minimum of $25 million in net investment.
There is no legal requirement for a domestic hedge fund to utilize the services of a fund administrator. However, a fund administrator can be an essential partner in the management of any hedge fund, reducing the costs for yearly audits and tax preparation (i.e., preparation of Form 1065 and Schedule K-1’s). Moreover, hedge fund administrators further prove their worth by providing comprehensive
performance reports for management as well as fund investors.
An “incubator” hedge fund is a cost effective option for creating a marketable track record that can be leveraged to attract investors. Think of an incubator fund as a “startup” hedge fund with little record of performance, often funded through a small group of investors, often friends and family. With an incubator hedge fund, the fund promoters can test strategies and create a track record that can be relied upon at a later date to transition to a “professional” hedge fund with significantly larger amounts of capital under management. Typical jurisdictions for forming incubator funds include the British Virgin Islands, Cayman Islands. Saint Lucia and the United States.
Blog
Sep/30/2019
Section 3(c)(1) Funds
Section 3(c)(1) refers to the section of the Investment Company Act of 1940 that provides an exemption to registration...
Sep/30/2019
Section 3(c)(7) Funds
Section 3(c)(7) of the Investment Company Act provides an exemption for private hedge funds from registration as an Investment...
Sep/30/2019
The Cayman Islands Data Protection Law
The Cayman Islands Data Protection Law ("DPL") applies to any investment advisor who provides investment advice to a Cayman...
