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Financial Services: Hedge Funds/
Investment Partnerships |
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Hedge funds and other sophisticated investment vehicles require a balance of savvy professionals and effective financial support systems. |
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Financial Services
• Structuring of hedge funds
• Business structure
• Portfolio reporting
• Prime broker-dealer relationships
• Internal control structure and review
• Financial reporting
• Partnership and corporate tax returns
• High net worth investor tax returns
• Tax planning
• Transaction record-keeping
• Strategic planning
• Litigation support
• Estate and retirement planning
• Succession planning
• Systems consulting
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The emergence of hedge funds as a popular investment vehicle for financial institutions and high net worth individuals has created the need for specialized accounting expertise. Proper structuring and the institution of systems to assure compliance and support financial and tax reporting are integral to the success of the fund.
Since hedge funds first appeared on the investment landscape, Margolin, Winer & Evens LLP has provided limited partnerships and LLCs with strong expertise in various aspects of fund management. Our specialized Financial Services Practice Group is a highly regarded resource for guiding investment partnerships in the intricacies of leveraging a sound operating framework for maximum financial benefit.
MWE is one of the largest accounting and business advisory firms in the Northeast. Since 1946, MWE has been a trusted advisor to the New York financial community serving investment advisors, commodity pool operators, broker-dealers and hedge fund managers.
From the earliest stages of fund formation, MWE’s Financial Services Practice Group can help investment managers build a sound foundation to support the fund’s operation. From determining the fund entity and drafting private offering memorandum, we collaborate with legal counsel to ensure that key financial, tax and operational issues are addressed. This encompasses assisting the fund managers in devising a compensation structure, combining net asset and performance fees for maximum return on investments. Our standing in the investment community also enables us to recommend a prime broker to manage the fund’s trading activity and generate critical transaction reports.
Also fundamental in the start-up period is appropriate tax planning, which is integral to the profitability of investment returns. Different types of funds and trading strategies are treated differently under the Internal Revenue Code. For tax purposes, hedge funds are classified as either trader or investor funds, resulting in significantly different tax treatment for the partners. Classification depends on the facts and circumstances of the trading activity and strategies. MWE will advise the fund managers on the many variables that influence tax efficiency, ensuring that the most advantageous tax strategies are employed to derive maximum benefit from the applicable IRC provisions.
Once trading activity commences, our Financial Services Practice Group begins the essential functions of organizing and implementing the internal accounting and reporting systems to ensure compliance with the regulations of the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), National Futures Association (NFA) and Internal Revenue Service (IRS). Among the most important of these functions is record-keeping, preparing financial statements and capital account reports, calculating and tracking capital calls, determining tax allocations to partners, and preparing partnership and corporate tax returns.
Maintaining a thorough and well-planned operating system is critical to the success of the investment partnership. However, for partners, fully capitalizing on the fund’s investment gains requires strategic planning for the long and short-term. To ensure that you reap the rewards of your risk and protect the value of your investment for your heirs, MWE provides a full spectrum of Estate and Retirement Planning services.
From conception to execution, MWE’s focus is on ensuring the viability and tax efficiency of your investment venture. The professionals in our Financial Services Practice Group entrusted with this mission represent the highest standards of excellence and achievement in the field. Many are active in leading professional associations and serve on specialized committees in order to remain current with new industry trends and developments.
As your financial consultants, MWE will be there with you every step of the way, from partnership formation to fund management.
We call it turning vision into value. You’ll call it one of the best financial decisions you’ve ever made.
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