FAQs

What’s involved in creating a new investment fund (hedge fund, real estate fund, private equity fund, etc.)?

Each fund or investment vehicle we create is customized to our clients specific needs and fundraising goals. During our kick-off meeting, we walk through all of the steps and create a game plan for each client for a flat fee. Some of the key steps include:

  1. Deciding and creating the legal structure (e.g. LLC, limited partnership)

  2. Drafting key documents — e.g. Private Placement Memorandum (PPM), subscription agreement, operating agreement, investor certifications, offering documents

  3. Ensuring compliance with securities laws (e.g. exemptions under Regulation D, Regulation A, or Regulation CF)

  4. Investor outreach and onboarding processes

  5. Ongoing compliance, reporting, and operational support

What is a PPM (Private Placement Memorandum), and do I really need one?

A PPM is a disclosure document provided to potential investors. It describes the offering, the risks, the business plan, terms, fees, and legal conditions. It is often critical to limit the fund sponsor’s liability and to satisfy legal disclosure requirements as well as investor due diligence expectations. We provide a complete “Investor Packet” that includes the PPM and related documents.

How long does it take to form a fund and start fundraising efforts with investors?

The timeline depends on complexity (number of investors, jurisdiction, asset types, regulatory issues). A relatively straightforward fund formation with standard documents might take a few weeks; more complex funds, cross-jurisdiction offerings, or novel asset classes might take longer. We provide a project plan and can estimate a timeline during a consultation. During our initial meeting we’ll also discuss a flat fee so you know your budget as well as all the specifics like legal deliverables, marketing reviews, SEC exemptions, etc.

What are the risks of starting a fund / raising capital?

Some common risks include regulatory noncompliance (which can lead to penalties), investor litigation, failing to raise sufficient capital, operational risks, reputational risk, and liability for misstatements or omissions to investors. That is why proper legal structuring and disclosure (e.g. via a PPM) is crucial.

When is a securities offering “exempt” and which exemptions do you work with?

Many private fund or capital raising offerings rely on statutory exemptions from registration. We commonly work with:

  • Regulation D (various rules under it, such as Rule 506(b), 506(c))

  • Regulation A (Tier 1 and Tier 2)

  • Regulation CF

    These exemptions allow issuers to raise capital without full SEC registration, but only under certain conditions which we help you navigate.

How do I know if I have a valid securities fraud claim?

Common warning signs include misrepresentations or omissions in offering materials, false financial statements, conflicts of interest not disclosed, failure to deliver promised returns, or violations of securities laws. If you believe you were misled or suffered loss, we can review your case and assess whether you have a viable claim.

What is the process for recovering money lost to securities fraud?

We meet with each client and discuss a customized approach to recovering their investment. While every investment fraud case is different, typical steps include:

  1. Initial case review (gather documents, investments, communications)

  2. Legal demand or filing suit / arbitration

  3. Discovery (obtaining evidence, depositions)

  4. Settlement negotiations or trial/award

  5. Enforcement / collection

What is a FINRA investigation / when does it apply?

FINRA investigates broker-dealer misconduct, disputes, and securities industry rule violations. If your case involves brokers, broker-dealers, or misconduct in securities transactions, FINRA may have jurisdiction or a role. We represent clients in FINRA investigations and disciplinary matters.

Do you work on contingency for fraud cases?

In some cases, yes — depending on the facts, risk, and recoverability, we may structure a contingency or hybrid arrangement for fraud or arbitration claims. But this is evaluated on a case-by-case basis.

Do you also handle M&A (Mergers and Acquisitions) and other related corporate law matters?

Yes, we handle M&A transactions and related corporate law matters for clients especially clients that are operating funds and need the legal expertise to make investments in target companies or other strategic investments. Our M&A services include tax strategies, buy side and sell side transactional services, etc. We’ve helped dozens of clients close on critical purchases in a variety of industries.