What is a fund management company?
Put simply, investment management firms invest their clients’ money. Investment management firms take on all the effort of creating an investment portfolio for their clients and open up new investment opportunities that wouldn’t otherwise be available. Investment management firms work for all different types of client.
How is a fund structured?
Structured funds are a type of fund that combines both equity and fixed-income products to provide investors with a degree of both capital protection and capital appreciation. Structured funds also use options, futures, and other derivatives, often linked to market indexes, to provide exposure to capital appreciation.
How do fund management companies work?
Asset management companies (AMCs) are firms pooling funds from various individual and institutional investors and investing in various securities. The company invests the funds in capital assets such as stocks, real estate, bonds, and so on.
What is the legal structure of a fund?
Most venture and private equity funds use a limited partnership as their legal structure, which involves two main types of actors: (1) a general partner (GP) and (2) limited partners (LPs). The general partner oversees and runs the business while limited partners do not partake in managing the business.
How is a hedge fund management company structured?
The management company is typically structured as a limited liability company. The hedge fund will typically maintain a bank account as well as a brokerage account. [Note: some hedge funds will not maintain a bank account at the fund level.]
What are the duties of a fund management company?
Fund Management companies take charge of all activities relating to the day-to-day operation of investment funds. This includes overseeing the investment management, marketing and central administration of the fund, as well as establishing a risk management and due diligence that satisfies regulatory requirements and protects investor interests.
How many funds can a personal fund manager manage?
A personal fund manager typically deals with a small quantum of investment funds, and an individual manager can handle multiple lone funds. Offering Investment management services includes extensive knowledge of:
How does fundrock work as a fund management company?
At FundRock, we have developed an independent fund management model that integrates seamlessly with your in-house approach and gives you full control of making the investment decisions.
