Legal Question in Investment Law in Delaware
limited partnership/hedge fund
If I were to manage a small amount of money for family and friends, and combined it into a limited partnership, would i still be subject to hedge fund rules regarding investor suitability, etc. I am trying to get a track record going without having a minimum of US$1 million.
1 Answer from Attorneys
Re: limited partnership/hedge fund
I am a hedge fund attorney and the general counsel to a hedge fund group in NYC. There are a number of exemptions that you can rely on in starting your fund. The short answer is that provided you have a prior substantive relationship with your "seed" investors and that you do not advertise your fund or make a general solicitation, you can raise money from a limited number of friends and family who are not "accredited investors".
This answer assumes certain facts and should not be construed as legal advice.
Good luck!!
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