Capital introduction

From The Jolly Contrarian
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The tricky business, engaged in by the “consultancy” arm of a modern prime broker, of putting investors and investment managers together without looking like it was anything to do with you.

The name of the game is avoiding looking like a “placement agent” (that is, appearing to be marketing the fund's securities and thereby taking on prospectus liability) and to avoid your activity inadvertently bringing the fund in scope for local regulations on hedge funds in a potential investor’s jurisdiction, to which it would not otherwise be subject, and which might apply if it were thought to be offering its securities directly in that locale. Like AIFMD, for very good example.


See also