Our clients, ranging from start-up ventures to established firms with hundreds of billions of dollars under management, benefit from Ropes & Gray’s deep experience in the industry. We represent all facets of the industry from around the world, including hedge fund sponsors (both institutional and start-up sponsors), fund-of-funds, institutional investors and seed capital investors.
The success of our work with clients has earned us recognition as one of the elite hedge funds practices in the world. For four years in a row, 2011 - 2015, we were named “Law Firm of the Year” for hedge funds and private funds by U.S. News & World Report – Best Lawyers “Best Law Firms” report.
A broad exposure to the industry enables us to identify new developments and provide cutting-edge advice on innovative product solutions and emerging regulatory requirements, including:
- Fund formation and operations
- Internal operating agreements and profit sharing arrangements
- Anchor investor capital negotiations
- Alternative fee structures
- Trade structuring, including international tax advice
- Spinouts and mergers
- Counterparty risk management and negotiation of counterparty documentation
- Response to regulatory inquiries and investigations
- Advisers Act regulatory implications and registration
- Commodity Futures Trading Commission and National Futures Association registration, regulation and compliance issues
Complex Investment Strategies
Our attorneys collaborate with our clients to develop solutions for highly complex investments, including:
- Hybrid hedge funds/private equity funds, including seeding and accelerator vehicles
- Currency overlay and other currency management and hedging programs
- Tail risk funds and strategies
- Advice to systems trading platforms, including IP issues
- Advice to commodity pool operators and commodity trading advisers on product design, fund formation, marketing, negotiations and documentation
Clients benefit from attorneys well-versed in the hedge funds industry, but also from attorneys across the firm with deep knowledge and vast experience in every discipline of law critical to funds and their investors.
Hedge fund sponsors come to Ropes & Gray for our broad experience and deep knowledge of the industry. Clients take advantage of our comprehensive, hands-on and cutting-edge approach and seek our advice on innovative product solutions. Examples of our client work include representing:
- The Blackstone Group’s Strategic Alliance Fund, LP and Strategic Alliance Offshore Fund, Ltd. in their seed investments in multiple hedge funds. We also formed Strategic Alliance Fund LP II and Strategic Alliance Offshore Fund Ltd. II, domestic and offshore funds with a hybrid private equity and hedge fund model which closed with approximately $2.3B in commitments.
- The Baupost Group, LLC in the purchase and sale of various private debt, equity and real estate investments, including domestic and cross-border joint ventures often involving complex structures. We also advise Baupost on matters relating to its trading of public debt and equity securities.
- PIMCO as lead counsel since early 2010, in connection with the formation of numerous hedge funds, including a series of tail risk funds and several overlay strategy programs, and related documentation for comparable separate account products.
- Grantham, Mayo, Van Otterloo & Co., LLC in all aspects of its hedge fund business. A recent matter included the formation of a hedge fund that invests in long and short positions with respect to bank loans, bonds, notes and other obligations of issuers experiencing (or expected to experience) financial stress.
- Sansar Capital Management, an Asian-focused hedge fund manager. We provide advice on all aspects of its business, including trading, compliance, counterparty documentation, private investments, securities restrictions, representing them in bankruptcy petitions and fund documents, among others.
- Commonfund in connection with the organization and offering of a number of private funds of hedge funds. We also advised Commonfund, which offers nonprofit institutional investors a range of investment funds, on issues associated with the expansion of its services to new client segments, including benefit plan investors and non-U.S. investors.
- Stockbridge Partners LLC, an affiliate of Berkshire Partners LLC, in connection with the establishment and operations of Stockbridge Fund, L.P., a hedge fund applying the investment philosophy developed by Berkshire Partners in its private equity investing to investments in marketable securities.
- Archview Investment Group in connection with the organization and offering of its initial hedge fund, a credit opportunities fund, and its registration with the SEC as an investment adviser. Archview is a recently-established hedge fund manager in New York with more than $300 million of AUM.
Our representative clients include:
- Arbalet Capital LLC
- Archon Partners LLC
- Archview Capital LLC
- The Baupost Group LLC
- Blackstone Alternative Asset Management
- Bridger Capital LLC
- Caspian Capital Management LLC
- Commonfund Asset Management Company, Inc.
- Costa Brava Partnership III LP
- Emrys Partners LP
- Episteme Capital Partners US LLC
- Equinox Asset Management LLC
- Franklin Templeton Institutional
- Grantham Mayo Van Otterloo & Co. LLC
- Grosvenor Capital Management
- Jamison Capital Partners
- Kensico Capital Management Corp.
- Maverick Capital Ltd.
- Pacific Investment Management Company
- Ramius Alternative Solutions
- Sansar Capital Management
- Schroder Investment Management North America Inc.
- Standard Life Investments
- Stockbridge Associates LLC
- Tech Square Partners
- Tiger Management LLC
- Tudor Investment Corporation