A hedge fund manager must keep abreast of current trends in hedge fund structures and terms in order to raise capital from investors, anticipate prospective changes in the marketplace and adapt accordingly. At the recent Seward & Kissel Private Funds Forum, panelists examined key capital raising and fund structuring trends in the hedge fund industry. This article, the first of a two-part series, summarizes the panelists’ discussion of seeding arrangements and fee structures as well as ERISA and taxation considerations upon hedge fund structuring. The second article will explore the use of special fund structures, activist strategies and alternative mutual funds. For additional insight from the firm, see “Seward & Kissel New Hedge Fund Study Identifies Trends in Investment Strategies, Fees, Liquidity Terms, Fund Structures and Strategic Capital Arrangements
,” Hedge Fund Law Report, Vol. 8, No. 9 (Mar. 5, 2015). For more on hedge fund seeding arrangements, see “Report Offers Insights on Seeding Landscape, Available Talent, Seeding Terms and Players
,” Hedge Fund Law Report, Vol. 8, No. 1 (Jan. 8, 2015); and “New York City Bar’s ‘Hedge Funds in the Current Environment’ Event Focuses on Hedge Fund Structuring, Private Fund Examinations, Compliance Risks and Seeding Arrangements
,” Hedge Fund Law Report, Vol. 7, No. 11 (Mar. 21, 2014).