A number of factors contribute to long-term success for hedge funds, starting with high-quality investment performance. Hedge funds are all about alpha.
However, to attain business success and a stellar track record, hedge funds must also raise capital and attract and retain exceptionally talented professionals. This article examines how to strengthen the latter ingredient by using advanced planning to help incentivize experts at the fund.
The management company is the operating entity that hires the fund’s professional and administrative staff. It pays their salaries and provides various benefits programs. Very often, astute general partners use their management companies to deliver programs and advanced planning solutions that nurture and retain key talent. It’s also through the management company that the general partners usually structure continuation plans.