Capital Introduction for Hedge Funds, What Lies Beneath (PDF-69kb)
Capital Introduction for Hedge Funds, What Lies Beneath
Jay B. Gould
This article appeared in slightly different form on Hedgeco.Net.
One of the most important considerations for hedge fund managers when establishing or reviewing prime brokerage arrangements is the capital introduction capability of the prime broker. Expanding the distribution for most hedge funds is often essential to their success, but as we will see, the regulatory risks associated with such “capital introduction” activities are substantial and growing.
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