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Capital introduction: Difference between revisions
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What has all this to do with the honourable practice of [[capital introduction]]? Well: the accruing benefits to the introducer are equally tangential, and the formal risks of getting your shape wrong just as catastrophic. “'''Cap intro'''” is the tricky business, engaged in by the “consultancy” arm of a modern [[prime broker]], of putting prospective investors and putative investment managers together — getting them a room, if you like — without looking like it was anything to do with you. | What has all this to do with the honourable practice of [[capital introduction]]? Well: the accruing benefits to the introducer are equally tangential, and the formal risks of getting your shape wrong just as catastrophic. “'''Cap intro'''” is the tricky business, engaged in by the “consultancy” arm of a modern [[prime broker]], of putting prospective investors and putative investment managers together — getting them a room, if you like — without looking like it was anything to do with you. | ||
The name of the game is avoiding looking like a | 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 {{tag|AIFMD}}, for very good example. | ||
{{sa}} | {{sa}} | ||
*[[Prime broker]] | *[[Prime broker]] | ||