Opalesque Industry Update - Rothstein Kass (www.rkco.com), a leading professional services provider to the financial services industry, today announced the release of an article titled “Should I Go With the Flow Into Liquid Alts?” The piece, published by the Rothstein Kass Institute, the firm’s industry think tank, outlines a set of important questions and critical considerations to help guide alternative investment managers through the decision-making process when considering a move into the growing liquid alternatives market. The article is designed to help private fund managers determine whether a registered product is right for them, while providing tips on how to best implement their strategy if they decide to make the move.
“As regulatory requirements change, many private fund managers are looking to the retail space as way to tap new assets and new investors but the move isn’t right for everyone,” said Frank Attalla, principal, Rothstein Kass. “In this paper, our goal was to outline key questions, considerations and best practices to help managers make smarter decisions about what’s best for their businesses both today and in the long-term. We want to stress the importance of looking at all the information objectively before following the flow into liquid alts.”
This special-edition article poses numerous questions with critical implications for private fund managers weighing the move into the retail product space. Some of the areas covered include: the impact a registered product might have on their existing private fund business, how particular strategies will translate in the retail space, distribution considerations and challenges, operational and compliance implications, as well as tax and reporting requirements. The article also explores the change in mindset for managers moving from the private fund business into the retail space.
“In the article we talk about everything from reporting requirements and track record portability to manager commitment and mindset,” said Marc J. Wolf, principal, Rothstein Kass. “This is a real change from a business standpoint. While many managers research all the operational and compliance components some simply aren’t prepared for the mental shift it requires to report to a board. The numbers don’t lie—there’s a lot of opportunity in the liquid alts space, but managers have to be committed to the move if they’re going to be successful. We hope this paper helps managers make smarter decisions and, ultimately, makes the move a little easier.”
The special publication also provides managers with a chart to quickly compare registered funds and private funds in many key areas, including filing requirements, organizational structure, capital raising and more. A copy of the article is available here.