Identifying and Mitigating the Chief Legal, Regulatory and Operational Risks in Hedge Fund Manager Office Sharing Arrangements (Part Three of Three)

On the positive side, sharing office space can save hedge fund managers (especially startup managers) money, increase efficiency and facilitate legal idea sharing.  On the negative side, sharing office space can increase regulatory and operating risk.  The first article in this three-part series detailed the main benefits of office sharing.  The second article detailed the main risks and how to mitigate them.  This article, the last in the series, discusses subadvisor, subtenant and contract arrangements; allocation of hedge fund manager real estate costs; prime broker and “hedge fund hotel” arrangements; and how to handle office sharing arrangements during on-site due diligence visits by institutional investors.

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