Step by step guide on how to starting a Hedge Fund

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www.advancedfundadministration.com
1(345) 943 4232
How to start a Hedge Fund
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About US Advanced Fund Administration
www.advancedfundadministration.com
1(345) 943 4232

• Welcome to AFA (Advanced Fund Administration)
• Advanced Fund Administration (AFA) is a
  privately owned hedge fund and private equity
  fund administration firm established in the
  Cayman Islands in January 2008 by Peter M.O.
  Young. In September 2009 AFA expanded its global
  footprint into the United States by opening its
  Summit, New Jersey office trading as Advanced
  Fund Administration LLC, and in November 2014
  established an office in BVI, trading as Advanced
  Fund Administration (BVI) Ltd. AFA is also
  rolling out a Luxembourg based solution to meet
  the fund administration needs of our European
  based clients electing to domicile in Luxembourg.
• In 2013 AFA expanded its service offering to
  include offshore legal services via AFA Legal
  Resources (Cayman) Ltd, as well as launching AFA
  Advisory Services to address the needs of early
  stage fund managers

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Hedge Funds
www.advancedfundadministration.com
1(345) 943 4232

• AFA is a SSAE 16 Type II compliant fund
  administrator offering a comprehensive and cost
  effective solution to hedge fund managers,
  remaining flexible in providing fund
  administration services to address varying client
  needs.
• AFAs Hedge Fund expertise services all types of
  hedge fund structures and investment instruments
  including Arbitrage, Emerging Markets, Event
  Driven, Fixed Income, Fund of Hedge Funds,
  Futures and Options, Global Macro, Long/Short
  Equity, Venture Capital, Real Estate, Life
  Settlements, Market Neutral, Multi-Strategy,
  PIPEs, Distressed Debt, Loans, etc

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Develop a Business Plan A business plan is the
  document that owners, business partners and
  financial sources want to see when you are
  starting your company. You should take the
  necessary time to work through your business
  model, estimate the gross revenues, general
  operating expenses, infrastructure needs and
  staffing.
• A business plan is a road map for your business
  and should describe your business while answering
  fundamental questions about where you are going,
  how you plan to get there and whether you can
  succeed. The business plan may be amended as you
  move forward, and as you encounter new
  opportunities consider how those opportunities
  fit into your plan.
• Visit for more detail http//www.advancedfundadmi
  nistration.com/how-to-lunch-hedge-fund

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Choose Primary Service Providers Before picking
  any Primary Service Provider, youll want to make
  sure the representative firms have the following
  characteristics
• Expertise in Hedge Funds and Private Equity Funds
  - The firm should have a deep knowledge of all
  issues related to hedge funds and private equity
  funds on a global scale.
• Partner and Associate Expertise - The partner(s)
  and/or associate(s) you work with at each
  representative firm should have a deep knowledge
  of their respective area as it relates to hedge
  funds and private equity funds.
• Startup Expertise and Ongoing Support Select
  service providers that are right sized, to not
  have the expertise in launching new funds, but
  who are also transitional in growing with your
  fund to provide ongoing support

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Audit Tax Among others, the following services
  will be provided by your Audit Tax Firm
• Estate Planning at launch is recommended while
  the business has little or no value versus in the
  future where there may be considerable tax
  consequences to alter the ownership structure
  while the business is worth considerably more.
• 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)
• Tax Preparation for the General Partner and
  Management Company entities along with initial
  consultation with Legal Counsel to determine the
  best corporate structure for tax efficiency
  across the entire fund structure

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Fund Administration In choosing a Fund
  Administrator, you will want to choose a firm
  that has a breadth of experience in working with
  all types of investment strategies and can
  service different asset classes on a global
  basis. Advanced Fund Administration provides a
  comprehensive and cost effective, turnkey
  solution for new launch managers including
• Visit Hedge Fund Administration Services for more
  details.

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Prime Broker A new hedge fund manager should
  consider the following characteristics of a prime
  brokerage firm
• Multiple Custodian Choices
• Securities Lending
• Financing
• Technology
• Portfolio Analytics/Reports
• Trading
• Trading Technology
• Business Consulting Services
• Client Service

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Secondary Service Providers Once the Primary
  Service Providers have been chosen, you will then
  move on to the Secondary Service Providers that,
  in many cases, will provide equally important
  services as your primaries.
• Outsourced Compliance
• Outsourced Risk Management
• Insurance Broker
• Outsourced Human Resources
• IT Managed Services

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Office Space Infrastructure Looking for office
  space can be a time consuming process, and you
  will have to determine whether you require a
  physical office or virtual office presence. To
  determine your space needs, youll want to
  consider (a) how many employees youll have at
  launch and also one year from launch if you
  execute your business plan and (b) the
  configuration of the office Office space
  solutions include
• Physical Office
• Virtual Office
• Meeting Rooms
• Video Communications

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Human Resources Key Personnel Chief Financial
  Officer (CFO) - Will have responsibility of
  overseeing the financial functions for the
  general partner entities, management company, and
  fund(s). In addition to being responsible for the
  financial matters of the operating companies, the
  CFO will be responsible for the daily
  cash/position reconciliation of the fund(s)
• Chief Operating Officer (COO) - Will have the
  responsibility of overseeing the operations for
  the general partner entities, management company
  and fund(s). This will include working with the
  primary and secondary service providers along
  with daily fund operations (e.g. trade
  reconciliations), marketing, and investor
  relations along with collaborating with the CFO
  to execute the overall business plan of the firm
  as determined by the Founding Partner(s)

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Enterprise Risk Management An Enterprise Risk
  Management (ERM) review will include the review
  of a firms enterprise-wide infrastructure,
  reporting and governance, and recommend
  customized ways to enhance and align business
  efficiency and reporting capabilities.
• Enterprise Risk Management Solutions
• Operational Risk Assessment
• Risk Audit
• Document Review and Preparation

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How to Start a Hedge Fund
www.advancedfundadministration.com
1(345) 943 4232

• Step by Step Guide on how to launch a hedge fund
• Capital Raising Having a well-thought out and
  organized marketing strategy is a key component
  prior to beginning the process of raising
  capital.
• AFA Advisory Services provides a specific set of
  deliverables to managers of early stage hedge
  funds and private equity funds, as well as
  established fund managers who seek to increase
  Fund assets under management through development
  of an institutional grade product. Areas of focus
  include
• Investment Strategy/Style Description
• Types of Investors
• Click to view How to Start Hedge Fund in Detail

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Contact Today!
www.advancedfundadministration.com
1(345) 943 4232

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  .com
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• Cayman Islands

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