Strategy
Multi-Strategy Fund
Private Credit
Closed-End Fund
U.S.-Based Investors
Our Initial Take
We first met the founders of a multi-strategy income fund during an investor event in Miami. The founders were successful individual investors and ready to launch their inaugural fund. They were excited about the opportunity ahead, but discouraged by the hefty upfront expenses of launching a fund.
Our discovery call helped our team understand the near-term and long-term goals of the General Partners. We then set out to craft an optimal fund structure for the team's inaugural fund.
Fund Objectives
Solution
The Funds Group used its prior experience crafting fund documents for closed-end private credit funds with multiple closes.
The solution provided:
Closed-End Fund: We worked with the firm's GPs to use a closed-end fund structure with the option to have multiple closes. An open-end fund was an option, but the underlying assets had scheduled maturities that did not always allow for redemptions.
Subsequent Closes: The fund's private placement memorandum allows for subsequent closes after the initial fundraising period. We ensured early investors were not disadvantaged by new investors joining in subsequent closes.
Cost-Optimized Approach: The Funds Group has a flat hierarchy, and relies on fund formation consultants to prepare documents prior to a review by an experienced fund formation attorney. This ensures clients receive an effective end-result at a more affordable cost.
