Fund Operations and Compliance

We counsel on all aspects of fund business and operations, including:

• Admission and withdrawal of managers
• Employment matters, including hiring and departure of employees and consultants
• Issuance of carried interest
• Profit sharing plans
• Transfers of interests in fund and management entities
• Policies and procedures
• Securities law compliance, including reporting obligations under the Investment Advisers Act

While at other firms the tax group is separate from the fund formation group — often leading to inefficiencies — our tax lawyers are directly involved in our fund practice. Knowing the economic mechanics of a fund are driven by tax rules, we keep our tax lawyers as an integral part of advising on fund operations. We also collaborate with accountants, auditors and fund administrators to streamline our clients’ operations.

We develop regulatory compliance policies tailored to your organization, working with you to customize your compliance program to match your size and operational approach while ensuring compliance with SEC requirements.

We advise fund clients on a range of regulatory matters, including:

• Investment Advisors Act of 1940, including analysis of available exemptions from registration.
• Securities Act
• Anti-money laundering (AML) and Know-Your-Customer (KYC) compliance
• FinCEN beneficial ownership reporting under the Corporate Transparency Act, including required filings and relevant exemptions within fund structures.
• State and SEC examinations, representing advisory firms in connection with inquiries and examinations from state and federal regulators.

We see the range of approaches taken by VC firms and help you develop a compliance program in line with market practices.

We advise fund clients on all aspects of digital asset investments and regulatory compliance including:

• Custody
• Resale of digital assets
• Crypto fund formation
• Digital asset governance, including token governance