Post on 13-Feb-2018
Leaders in launching funds for more than 30 yearsEY’s hedge fund services
1Leaders in launching funds for more than 30 years |
Leading service provider for start-ups and spin-outs We have been the dominant accounting firm for start-ups and spin-outs for more than 30 years in the audit, tax and advisory space.
EY Emerging Manager PlatformOur integrated solution is designed to meet the needs of emerging managers.
To better meet the needs of our emerging hedge fund clients, EY has established our Emerging Manager Platform, which is focused on providing cost-efficient services to funds during the start-up phase. The Emerging Manager Platform comprises hedge fund professionals providing one-stop, integrated services, addressing all your start-up needs.
Who we are EY has been a leader in serving the hedge fund sector for more than 30 years. Our emphasis on quality and value is a major factor in the growth of our hedge fund practices. We have assisted many leading hedge funds through every phase of business — from starting up to obtaining listings on exchanges and going public. EY offers a wide range of services designed to provide support to organizations in the start-up phase. In fact, our practices were founded on start-ups. Our services for start-ups include the following:
• Audit
• Domestic and global tax compliance
• Tax advisory and structuring, domestic and foreign
• Selection of domiciles, considering tax, regulatory and infrastructure implications
• Regulatory compliance
• Risk management
• Process improvement
• Technology optimization
• Tax impact to founders
• State and local tax planning
Many of our clients that began as start-ups are among the largest funds today. As these organizations mature, we continue to support their evolving requirements through our extensive portfolio of audit, tax, advisory and transaction services. Our global hedge fund practices are among the largest of any Big Four firm, and are led by highly skilled professionals who are intimately familiar with the demands of developing and maintaining a successful fund business.
Our global knowledge network includes more than 16,000 professionals with deep technical and business experience.
Teams are located in key financial centers throughout the world to serve clients wherever they need assistance. Clients benefit from the collective skills and know-how of this interconnected, worldwide network. Because of our presence in more than 60 cities worldwide, we bring firsthand insight on local market trends and accounting, tax and regulatory issues.
A market leader*
EY member firms• Audit approximately 40% of the top 100 global hedge funds • Provide services to approximately 70% of the top 100 global hedge funds• Provide tax services to approximately 60% the top 100 global hedge funds• Provide advisory services to approximately 25% of the top 100 global hedge
funds• Audit approximately 45% of the top 50 Americas hedge funds • Provide services to more than 80% of the top 50 Americas hedge funds• Provide tax services to approximately 70% of the top 50 Americas hedge funds • Provide advisory services to more than 30% of the top 50 Americas hedge funds• Audit approximately 40% of the top 50 Europe hedge funds • Provide services to approximately 40% of the top 50 Europe hedge funds • Provide tax services to approximately 45% of the top 50 Europe hedge funds• Provide advisory services to approximately 25% of top 50 Europe hedge funds• Audit 20% of the top 10 Asia hedge funds• Provide services to 20% of the top 10 Asia hedge funds• Provide tax services to 50% of the top 10 Asia hedge funds
Source: Hedge Fund Intelligence’s Global Billion Dollar Club, assets under management as of
January 2015.
Industry recognition for EY member firms• Best Audit Services, Alt Credit Intelligence US Fund Services Awards 2017• Best Tax Advisor, Alt Credit Intelligence US Fund Services Awards 2017• Best Advisory Firm, Alt Credit Intelligence US Fund Services Awards 2017• The Leading Global Service Provider for Hedge Funds — The Hedge Fund Journal
Awards 2017• Best Audit Services, Alt Credit Intelligence European Services Awards 2016• Best Overall Advisory Firm 2016 — HFM US Hedge Fund Services Awards• Best Audit Services for Asia Hedge Fund Services — HFM Awards Asia 2016• Best Tax Advisory for Asia Hedge Fund Services — HFM Awards Asia 2016• Best Audit Services, Alt Credit Intelligence US Fund Services Awards 2016• The Leading Global Service Provider for Hedge Funds — The Hedge Fund Journal
Awards 2016• Natalie Deak named one of the 50 leading women in Hedge Funds — The Hedge
Fund Journal• Mike Serota honored in 2015 for his outstanding contribution in tax accounting
and advisory — The Hedge Fund Journal Awards 2015• Best Accounting Firm 2009, 2010, 2011, 2012, 2013, 2014, 2015 — HFM US
Hedge Fund Services Awards• Leading Hedge Fund Tax Practice — The Hedge Fund Journal Awards 2015• Top global audit and accounting service provider 2013 — Hedge Funds Review• EY ranked #1 for outstanding service to the hedge fund industry (as well as in all
six categories — accounting firm, for tax, for audit, for regulatory/compliance, for client service and for hedge fund experience) 2014 — Institutional Investor’s Alpha
• Top auditor 2013, 2014, 2015 — Hedge Fund Alert (based on Securities and Exchange Commission registered funds)
• Best Audit Services for Asia Hedge Fund Services — HFM Awards Asia 2014, 2015
* Sources: Hedge Fund Intelligence, Absolute Return, Alpha Magazine, The Hedge Fund Journal.
3Leaders in launching funds for more than 30 years |2 | Leaders in launching funds for more than 30 years
A global networkOur wide-ranging, diverse, global client base encompasses all strategies, from simple long and short funds to highly complex trading funds. Our client service teams have extensive experience structuring and servicing complex funds, and extensive tax experience forming and servicing multi-faceted tax structures aross the globe.
Why we are differentAmong the Big Four firms: • We have been serving the hedge fund industry for years.• We have a large alternatives practice, with a large global footprint.• We have a globally integrated practice.
Stamford
Tokyo
Seoul
MoscowOslo
Rome
San Francisco
Los Angeles
Toronto
Cape Town
Bangalore
Beijing
Rio de Janeiro
Buenos Aires
Chicago
Dallas Washington, DC
Houston
Atlanta
Boston
Montréal
Philadelphia
London
São Paulo
Zürich
Sydney
Madrid
Bahrain
Malta
Milan
Frankfurt
Shanghai
Hong KongBahamas
Geneva
New Delhi
Munsbach
Miami
Cayman Islands
Bermuda
Curaçao
Dublin
AmsterdamLuxembourg
Tel Aviv
Minneapolis ParisJerseyGuernsey
Singapore
Mumbai(Bombay)
New York
Stamford
Tokyo
Seoul
MoscowOslo
Rome
San Francisco
Los Angeles
Toronto
Capetown
Bangalore
Beijing
Rio de Janeiro
Buenos Aires
Chicago
Dallas Washington, DC
Houston
Atlanta
Boston
Montréal
Philadelphia
London
São Paulo
Zürich
Sydney
Madrid
Bahrain
Malta
Milan
Frankfurt
Shanghai
Hong Kong
Bahamas
Geneva
New Delhi
Munsbach
Miami
Cayman Islands
Bermuda
Curaçao
Dublin
AmsterdamLuxembourg
Tel Aviv
Minneapolis ParisJerseyGuernsey
Singapore
Mumbai(Bombay)
New York
5Leaders in launching funds for more than 30 years |4 | Leaders in launching funds for more than 30 years
Thought leadershipEY works proactively to provide our clients with the latest information on trends and issues affecting the hedge fund sector. In addition, we sponsor many platforms throughout the year to keep our clients informed, including roundtable discussions with senior hedge fund executives, hedge fund surveys, papers and alerts on hot issues affecting the sector, published articles, interactive webcasts and participation in many industry conferences.
Our commitment to the hedge fund sector In addition to providing thought leadership and timely commentary on the latest hedge fund developments, we support the sector through our involvement in various sector forums and groups. For example:
• Hedge Funds Care — active supporter and board member
• Robin Hood Foundation — active supporter
• Managed Funds Association — strategic partner
• Alternative Investment Management Association — active member and sponsor
• American Institute of Certified Public Accountants — member of industry committees
Global Hedge Fund Symposium SeriesOur annual series of hedge fund symposia in 19 cities worldwide brings together more than 5,000 senior industry thought leaders and EY professionals. Discussions cover emerging trends, industry outlooks, regulatory developments, current hot topics and wide-ranging views on challenges and opportunities facing the industry.
Global Hedge Fund and Investor SurveyEY’s annual Global Hedge Fund and Investor Survey records the views and opinions of senior executives from more than 150 of the world’s largest hedge funds and investors on hot issues.
How to establish a global hedge fund business — a typical example
Prepare business objective
If appropriate, apply for regulatory authorization of fund If appropriate, apply for stock exchange listing of fund
Select service providers for the fund • Accounting firm
• Prime broker
• Administrator
• Law firm
Assess guidelines for tax and structuring Confirm domicile and structure of fund
Address infrastructure — office space/system technology Address human resources issues
Set up management company Understand estate and tax needs of founders
Comply with marketing rules in
different jurisdictions
Obtain all authorizations for
management company and fund
Launch fund
Apply for regulatory authorization (if applicable) for service and management company
Estimated time frame is three to six months.
Our Global Hedge Fund Symposium Series has a large footprint among the Big Four, attracting more than 5,000 thought leaders in 19 cities worldwide.
More than 150 of the world’s largest hedge funds and investors participate in our annual Global Hedge Fund and Investor Survey.
7Leaders in launching funds for more than 30 years |6 | Leaders in launching funds for more than 30 years
How to establish a global hedge fund business — a typical example
Management company
Portfolio accounting TaxReporting Operations
CorporateFund
Audit coordination
Regulation reporting
Management reporting
General ledger K-1 reporting
Fund accounting Transactions
Custody
Valuation
TransactionsRegulatory
Compliance
General counsel
Software development and support
Network administration systems and
communications
Hardware/disaster recovery
Investor website
Chief technology
Chief operating
Managing member
Registered investment
advisor
Fund A Fund B
Portfolio managers
Traders
Trade support
Daily
statement
Risk
Valuations
Portfolio management
Trading risk
Settlement risk
Portfolio risk
Business risk
Chief risk
Human resources/payroll Administration
management
control
Chief administration
Liquidity
Financing
Chief credit
Investor servicing Sales/marketing
Investor relations
Relationship management
Cash management/
treasury
9Leaders in launching funds for more than 30 years |8 | Leaders in launching funds for more than 30 years
Incentive allocation
Managementfee
Management feeIncentive fee
Shareholders
Master fund*
Investment manager
Domestic limited
partnership (feeder)
General partner
(domestic entity)
Offshore corporation
(feeder)
Invest/tradein securities
Non-US/US tax-exempt investors
US taxable investors
Limited partners Shareholders
Incentive allocation
Management fee
Limited partners
Master fund*
General partner
(domestic entity)
Offshore corporation
(feeder) Domestic
limited partnership
(feeder)
Investment manager
Invest/tradein securities
Non-US/US tax-exempt investors
US taxable investors
Incentive allocation
Management fee
Management feeIncentive fee
ShareholdersLimited partners
Offshore corporation
Domestic limited
partnership (feeder)
Investment manager
Generalpartner
(domestic entity)
Invest/tradein securities
Invest/tradein securities
Non-US/US tax-exempt investors
US taxable investors
*Master fund: offshore corporation, offshore limited partnership (LP) or domestic LP
*Master fund: offshore corporation, offshore LP or domestic LP
Typical fund structures IMaster-feeder structure Master-feeder structure
Revised fee and incentive allocation model
Side-by-side structureDomestic partnership structure Offshore corporation structure
Advantages• Provide single portfolio to
manage — greater economy of scale for purposes of day-to-day management and administration
• Offer different deal terms or tax structures to different investor groups
• Eliminate performance differences of side-by-side structure (assuming no withholding issues)
• Eliminate need to enter into duplicate agreement with counterparties (reduce cost)
• Obtain and maintain better deal terms due to increased assets under management
Disadvantages• Conflict of interest between
onshore and offshore investors (tax efficiency)
• Additional costs for three entities vs. two entities
Advantages• Minimize tax risk associated with management fee
11Leaders in launching funds for more than 30 years |10 | Leaders in launching funds for more than 30 years
Typical fund structures IIMini-master structure
Incentive allocation
Limitedpartners
Investment manager
Shareholders
General partner
#2
Incentive allocation
Master fund*
Mini-master (intermediate
fund)
Generalpartner
(domestic entity)
Domestic limited
partnership (feeder)
Offshore corporation
(feeder)
Managementfee
Invest/tradein securities
Non-US/US tax-exempt investors
US taxable investors
Incentive allocation
Managementfee
Managementfee
Incentive allocation
Investment manager
Domestic limited
partnership (feeder)
General partner
#2
Shareholders
Limitedpartners
Master fund*
Mini-master (intermediate
fund)
General partner
(domestic entity)
Offshore corporation
(feeder)
Invest/tradein securities
Non-US/US tax-exempt investors
US taxable investors
*Master fund: offshore corporation, offshore LP or domestic LP*Master fund: offshore corporation, offshore LP or domestic LP
Advantages• Allows the general partner to carry out the offshore side of the
structure
Mini-master structureRevised fee and incentive allocation model
Global contactsGlobalMichael D. Leemichael.lee@ey.com+1 212 773 8940
Michael Serotamichael.serota@ey.com+1 212 773 0378
Americas
Bahamas
Tiffany Norris-Pilchertiffany.norris@bs.ey.com+1 242 502 6044
Bermuda
Jessel Mendesjessel.mendes@bm.ey.com+1 441 294 5571
Brazil
Flavio Serpejante Peppeflavio.s.peppe@br.ey.com+55 11 2573 3290
British Virgin Islands
Mike Mannistomike.mannisto@ky.ey.com+1 345 814 9003
Rohan Smallrohan.small@ky.ey.com+1 345 814 9002
Canada
Gary Chingary.chin@ca.ey.com+1 416 943 3427
Fraser Whalefraser.t.whale@ca.ey.com+1 416 943 3353
Cayman Islands
Dan Scottdan.scott@ky.ey.com+1 345 814 9000
Jeffrey Shortjeffrey.short@ky.ey.com+1 345 814 9004
Curaçao
Bryan Irausquinbryan.irausquin@an.ey.com+599 9 430 5075
Fatima de Windt-Ferreirafatima.de-windt-ferreira@an.ey.com+599 9 430 5020
US (Boston)
Robert Glassmanrobert.glassman@ey.com+1 617 375 2382
Alex Johnsonalex.johnson1@ey.com+1 617 585 1930
Shaun Realshaun.real@ey.com+1 617 375 3733
US (Charlotte)
Corey Fickecorey.ficke@ey.com+1 704 338 0533
US (Chicago)
Matthew Koenigmatthew.koenig@ey.com+1 312 879 3535
Anthony Rentzanthony.rentz@ey.com+1 312 879 3957
US (Dallas)
Adrienne Mainadrienne.main@ey.com+1 214 754 3226
US (Houston)
Brenda Bettsbrenda.betts@ey.com+1 713 750 5913
US (Los Angeles)
Mark Gutierrezmark.gutierrez@ey.com+1 213 240 7490
Scott Odahlscott.odahl@ey.com+1 213 977 5893
Michael O’Donnellmichael.odonnell@ey.com+1 213 977 5858
US (Minneapolis)
Brian McIlhinneybrian.mcilhinney@ey.com+1 612 371 8564
Michele Walkermichele.walker@ey.com+1 612 371 8539
US (New York)
Joseph Biancojoseph.bianco@ey.com+1 212 773 3807
Natalie Deak Jarosnatalie.deak@ey.com+1 212 773 2829
Samer Ojjehsamer.ojjeh@ey.com+1 212 773 6486
David Racichdave.racich@ey.com+1 212 773 2656
George Saffayehgeorge.saffayeh@ey.com+1 212 773 2430
13Leaders in launching funds for more than 30 years |12 | Leaders in launching funds for more than 30 years
US (Philadelphia)
Robert Mulhallrobert.mulhall@ey.com+1 215 448 5614
US (San Francisco)
Michel Kapulicamichel.kapulica@ey.com+1 415 894 8605
Paul Kangailpaul.kangail@ey.com+1 415 894 8056
US (Stamford)
Michael Estockmichael.estock@ey.com+1 203 674 3137
Seda Livianseda.livian@ey.com+1 212 773 1168
Europe, Africa and Middle East
Bahrain
Ashwani Siotiaashwani.siotia@bh.ey.com+973 1751 4708
France
Matthieu Dautriatmatthieu.dautriat@ey-avocats.com+33 1 55 61 11 90
Hermin Hologanhermin.hologan@fr.ey.com+33 1 46 93 86 93
Germany
Rosheen Driesrosheen.dries@de.ey.com+49 6196 9962 6163
Oliver Heistoliver.heist@de.ey.com+49 6196 9962 7505
Guernsey
Mike Banembane@uk.ey.com+44 14 8171 7435
Ireland
Fergus McNallyfergus.mcnally@ie.ey.com+353 1 221 2599
Donal O’Sullivandonal.osullivan@ie.ey.com+353 1 221 2455
Isle of Man
Paul Duffypduffy@im.ey.com+44 16 2469 1818
Angus Gilmoreaegilmore@im.ey.com+44 16 2469 1803
Italy
Stefano Cattaneostefano.cattaneo@it.ey.com+39 02 7221 2452
Mauro Iacobuccimauro.iacobucci@it.ey.com+39 02 7221 2471
Giovanni Incarnatogiovanni-andrea.incarnato@it.ey.com+39 06 6753 5502
Paolo Zuccapaolo.zucca@it.ey.com+39 02 8514 3938
Jersey
David Mooredmoore@uk.ey.com+44 15 3428 8697
Luxembourg
Michael Fergusonmichael.ferguson@lu.ey.com+352 42 124 8714
Malta
Ronald Attardronald.attard@mt.ey.com+356 21 34 21 34
Karl Merciecakarl.mercieca@mt.ey.com+356 21 34 21 34
Mauritius
Daryl Csizmadiadaryl.csizmadia@mu.ey.com+230 403 4777
Ryaad Owodallyryaad.owodally@mu.ey.com+230 403 4717
Netherlands
Remco Bleijsremco.bleijs@nl.ey.com+31 88 407 3935
Arjan van Oostromarjan.van.oostrom@nl.ey.com+31 88 40 71113
Nordics
Helena Norenhelena.noren@se.ey.com+46 8 5205 9687
Fredrik Stigerudfredrik.stigerud@se.ey.com+46 8 5205 9853
Russia
Petr Avramenkopetr.avramenko@ru.ey.com+7 495 755 9700
Marchello Gelashvilimarchello.gelashvili@ru.ey.com+7 495 755 9813
South Africa
Anthony Cadmananthony.cadman@za.ey.com+27 21 443 0664
Michelle Kotzemichelle.kotze@ae.ey.com+971 4 701 0410
Spain
Roberto Diez Cerratoroberto.diezcerrato@es.ey.com+34 933 663 842
Switzerland
Sandor Freisandor.frei@ch.ey.com+41 58 286 8537
Rolf Geierrolf.geier@ch.ey.com+41 58 286 4494
Christian Soguelchristian.soguel@ch.ey.com+41 58 286 4104
UK
Robin Aitchisonraitchison@uk.ey.com+44 20 7951 1083
James Beszantjbeszant@uk.ey.com+44 20 7951 2877
Fiona Carpenterfcarpenter@uk.ey.com+44 20 7951 9373
Linda Henrylhenry@uk.ey.com+44 20 7951 8618
Zeynep Meric-Smithzmericsmith@uk.ey.com+44 20 7951 1928
Russell Morganrmorgan1@uk.ey.com+44 20 7951 6906Matt Pricemprice1@uk.ey.com+44 20 7951 2223
Dan Thompsondthompson2@uk.ey.com+44 20 7951 0144
Asia-Pacific
Australia
Antoinette Eliasantoinette.elias@au.ey.com+61 2 8295 6251
Rohit Khannarohit.khanna@au.ey.com+61 2 9248 5560
Jon Pyejon.pye@au.ey.com+61 28295 6972
China (Hong Kong)
Paul Hopaul.ho@hk.ey.com+852 2849 9564
Elliott Shadforthelliott.shadforth@hk.ey.com+852 2846 9083
Alpha Tsangalpha.tsang@hk.ey.com+852 2849 9173
China (Shanghai)
AJ Limaj.lim@cn.ey.com+86 21 2228 2929
Gavin Tanggavin.tang@cn.ey.com+86 21 2228 3023
Joyce Xujoyce.xu@cn.ey.com+86 21 2228 2392
India
Sameer Guptasameer.gupta@in.ey.com+91 22 6192 0480
Viren H. Mehtaviren.mehta@in.ey.com+91 22 6192 0350
Japan
Kazuhiro Ebinakazuhiro.ebina@jp.ey.com+81 3 3506 2411
New Zealand
Graeme Bennettgraeme.bennett@nz.ey.com+64 9 300 8191
Matthew Hanleymatthew.hanley@nz.ey.com+64 9 300 8008
Singapore
Amy Angamy.ang@sg.ey.com+65 6309 8347
Brian Thungbrian.thung@sg.ey.com+65 6309 6227
South Korea
Jong Yeol Parkjong-yeol.park@kr.ey.com+82 2 3770 0904
Jeong Hun Youjeong-hun.you@kr.ey.com+82 2 3770 0972
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EY is a leader in serving the global financial services marketplaceNearly 51,000 EY financial services professionals around the world provide integrated assurance, tax, transaction and advisory services to our asset management, banking, capital markets and insurance clients. In the Americas, EY is the only public accounting organization with a separate business unit dedicated to the financial services marketplace. Created in 2000, the Americas Financial Services Organization today includes more than 11,000 professionals at member firms in over 50 locations throughout the US, the Caribbean and Latin America.
EY professionals in our financial services practices worldwide align with key global industry groups, including EY’s Global Wealth & Asset Management Center, Global Banking & Capital Markets Center, Global Insurance Center and Global Private Equity Center, which act as hubs for sharing industry-focused knowledge on current and emerging trends and regulations in order to help our clients address key issues. Our practitioners span many disciplines and provide a well-rounded understanding of business issues and challenges, as well as integrated services to our clients.
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