+1(345) 943 4232

www.advancedfundadministration.c

How to start a Hedge Fund

+1(345) 943 4232

www.advancedfundadministration.c

About US Advanced Fund Administration

Welcome
to
Administration)

AFA

(Advanced

Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

Hedge Funds
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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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.advancedfundadministration.com/how-to-lunch-hedge-fund

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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.

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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)

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

How to Start a Hedge Fund

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

+1(345) 943 4232

www.advancedfundadministration.c

Contact Today!
Cayman Islands
Email:
Phone:
Website:

info@advancedfundadministration.com
+1(345) 943 4232
www.advancedfundadministration.com

USA
Email:
Phone:
Website:

infousa@advancedfundadministration.com
+1(908) 273 4545
www.advancedfundadministration.com