Revenue Sharing Agreement Hedge Fund

In such an arrangement the seeder is investing purely in the fund with the objective of maximising their returns as the fund s aum grows.

Revenue sharing agreement hedge fund. Hans hurschler has headed its hedge fund ventures unit since 2005. Returns on funds revenue share on underlying fund strategy or manager gross revenues monetisation of interest 0 0 2 0 4 0 6 0 8 0 10 0 12 0 14 0 5 8 7 0 7 7 13 0 regular net return emerging manager effect discounted fees revenue sharing portfolio of hedge funds emerging manager premium discounted fees revenue sharing. Hedge funds are alternative investments using pooled funds that employ numerous different strategies to earn active return or alpha for their investors. If you have questions about hedge fund seed deals.

Revenue share of all fees. Under that agreement commonwealth received a portion of the money that certain mutual fund companies paid to the broker to be able to sell their funds through. The fee sharing agreement will include all fees the manager receives from its investment management related activities including other funds or managed accounts managed by the manager. According to the sec s complaint since at least 2007 commonwealth had a revenue sharing agreement with the broker it required most of its clients use for trades in their accounts.

On august 1 2019 the sec charged an sec ria for failure to disclose conflicts of interest relating to a revenue sharing agreement with the broker used by most of its clients. In recent discussions with hedge funds one key area for change is the handling of commission sharing agreements csas. The rmf seeding business had previously been managed as a joint venture called swiss life hedge fund partners since 1998 but as swiss life reorganised its hedge fund and leveraged activities the opportunity arose for rmf to develop its own in house hedge fund ventures arm. Dematco inc a specialist in dematerialising and converting insurance instruments from paper form to electronic form has announced a 50 revenue sharing agreement with toronto based hedge fund manager quantus investment corp.

Hedge funds may be aggressively managed. The first and most common seed deal is the revenue share. Whilst the handling of research commission pools may not have had the drama of plunging stock prices the losses that particularly european funds suffered from lehman were both real and material. A revenue sharing agreement is a contractual arrangement in which a seeder is entitled to receive a certain percentage typically ranging from 15 to 25 of the seeded manager s gross or top line revenues and of the carried interest or incentive allocation received by the general partner of the seeded fund.