A recent court decision highlights the pitfalls of sloppily drafted agreements covering third-party marketing arrangements in the hedge fund context. This article summarizes that opinion, which is relevant to hedge fund managers, third-party marketers and others engaged in hedge fund capital raising. See “How Much Are In-House Hedge Fund Marketers Paid, and How Will Recent Developments in New York City and California Lobbying Laws Impact the Compensation Levels and Structures of In-House Hedge Fund Marketers (Part Three of Three),” Hedge Fund Law Report, Vol. 4, No. 20 (Jun. 17, 2011).
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