AnchorPoint

Insights

Notes from practice

Plain-spoken notes on fund structuring, terms and the market, written for managers and investors. For informational purposes only; not legal or tax advice.

Tax · Advanced Fund Topics

Why ECI and UBTI Shape Nearly Every Private Fund Structure

The fraternal twins of fund structuring: how ECI and UBTI differ, why they drive blockers, feeders and parallel vehicles, and where the blocker has to sit.

SMAs · EM Fundraising Pro Tips

EM Pro Tips: SMAs

Separately managed accounts as a practical entry point for emerging managers to secure capital and build a track record without a commingled fund.

SPVs · EM Fundraising Pro Tips

EM Pro Tips: Forming SPVs

Structuring single-asset and deal-by-deal SPVs efficiently, with clarity on economics, tax and compliance.

Independent Sponsors

EM Pro Tips: Seeding Arrangements

How sponsors can approach seed and anchor arrangements with clarity, efficiency and compliance in mind.

Independent Sponsors · Tax

EM Pro Tips: Structuring Closing Fees

Closing fees are meaningful compensation for independent sponsors, but poor structuring can create avoidable tax and regulatory issues.

Open-end Funds · EM Fundraising Pro Tips

Boost Fund Marketing Activities

Key takeaways on the SEC's Rule 506(c) no-action letter and updated Marketing Rule FAQs: what changed and what it means for GPs.

EM Fundraising Pro Tips · Independent Sponsors

EM Pro Tips: Alternatives to Fund Structures

Independent sponsor, managed account and search fund models as flexible ways to deploy capital without raising a blind pool.

Open-end Funds · Marketing

Marketing Activities Under Rule 506(c)

What fund managers can and cannot do when generally soliciting under Rule 506(c) after the SEC's no-action relief.

Closed-end Funds · EM Fundraising Pro Tips

EM Pro Tips: Management Fees

The nuances behind management fee structures: step-downs, write-off vs write-down formulations and transaction fee offsets.

Closing · EM Fundraising Pro Tips

EM Pro Tips: Herding Cats

Strategies for closing a fund efficiently: tying deadlines to a live deal, realistic timelines and selective fee discounts.

EM Fundraising Pro Tips

EM Pro Tips: Track Record

Licensing a track record from a former employer, and alternatives when licensing isn't possible.

EM Fundraising Pro Tips

EM Pro Tips: Stretching GP Dollars

Protecting fees and carry, allocating expenses and using transaction fees to keep an emerging manager's platform funded.

EM Fundraising Pro Tips

EM Pro Tips: GP Commitment

What GP commitment means, why it matters to LPs and how emerging managers can structure and fund it.

Regulatory · Advanced Fund Topics

NAV Loans and Fiduciary Duties

How a GP's waivable partnership duties and non-waivable Advisers Act duties interact when entering NAV loans.

Marketing · Advanced Fund Topics

Hypothetical Performance

What counts as hypothetical performance, the SEC Marketing Rule conditions and best practices for using it.

Investment Company Act · Introductory

Investor Count: 3(c)(1) vs 3(c)(7)

Comparing the two common Investment Company Act exemptions and what each means for investor eligibility and scale.

Introductory Topics

PE Funds: Economics

Five economic considerations for PE fund investors: GP commitment, fees, expenses, fee leakage and carried interest.

Introductory Topics

PE Funds vs Hedge Funds

How private equity and hedge funds differ across assets, liquidity, compensation, governance and fundraising.

Advanced Fund Topics

Co-Invest Vehicles

What co-investments are and the key legal issues: pari passu terms, allocation, broken deal expenses and exits.

Introductory Topics

Dissolving a Fund

A step-by-step guide to winding up a Delaware limited partnership in compliance with DRULPA and fund documents.

Introductory Topics

Fund Formation To-Do List

A simplified checklist of the key steps in setting up a fund, from GP entity to service provider engagements.

Advanced Fund Topics

New Links: GP Stakes

Minority investments in general partners: why investors want them, the mechanics and the key considerations.

Introductory Topics · Marketing

Marketing Funds 101

Key considerations for marketing private funds in the U.S. under Regulation D and the rules on general solicitation.

Advanced Fund Topics

Series vs Standalone Entities

A cost-benefit comparison of Series LLCs and standalone LLCs for managing multiple assets or vehicles.

Advanced Fund Topics

NAV Loans Risks

The risks NAV loans pose to limited partners: cross-collateralization, fees, crystallized carry and excused LPs.

Liquidity Solutions · Advanced Fund Topics

Continuation Funds

The risks continuation funds pose to LPs, from conflicts and added fees to concentration and misaligned incentives.

Open-end Funds · Liquidity

Hedge Fund Liquidity Terms

Gates, side pockets, holdbacks, lock-ups, slow-pay procedures and suspensions, and the trade-offs of each.

General Topics

2025 Predictions

Seven trends for fund managers in 2025 and beyond, from continuation funds and AI to retail capital and consolidation.

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