Well-managed hedge funds understand the market conditions and regulatory obligations that impact their ability to accelerate growth. While employing different investment strategies to maximize returns, they must also meet the compliance requirements of various regulatory bodies.

Serving funds at all stages of growth

CohnReznick’s hedge fund professionals serve both domestic and offshore funds – our Cayman Islands office provides services for Cayman Islands Monetary Authority (CIMA) registered funds. During a fund’s start-up phase, we provide structuring advice, consult on partnership agreements, private placement memoranda, and other offering information to comply with potential investors' needs.  Once operational, we assist your fund through ongoing tax planning and financial reporting guidance, structuring for tax efficiency with foreign jurisdictions/investors, preparing partnership tax allocations and tax returns, and assessing internal controls and risk management processes to improve effectiveness and efficiency.

Comprehensive audit services to meet investor needs

We provide audit services to address ongoing reporting requirements to investors including financial statement audit and reporting under U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).  For early stage funds, we conduct the performance examinations you need to establish your track record and attract investors. We also conduct annual surprise examinations of client assets in compliance with Custody Rule 206-4(2) under the Investment Advisers Act of 1940.  As a member of the Center for Audit Quality of the American Institute of Certified Public Accountants, our audit quality meets the high standards and strict requirements of the SEC, PCAOB, and investors.

Tax planning and compliance expertise

We understand the tax rules unique to alternative investments and provide full-service tax planning and compliance. This includes preparation of partnership income tax returns for the fund, general partner, and investment manager (Form 1065), preparation and compliance for foreign investments such as PFICs, CFCs, and foreign partnerships, FATCA compliance, analyzing investments to comply with wash sale, constructive sale, and straddle rules, and proactive state and local income tax planning. In minimizing the tax liabilities of your fund, we help you drive investment performance and manage profitable growth.

Market and regulatory intelligence

Our hedge fund team develops and shares market and regulatory knowledge to help our clients manage their funds, adapt to changing regulatory requirements, mitigate cyber-risk, and make informed business decisions. This proprietary information is distributed through regularly scheduled electronic communication, executive roundtable discussions, and industry-sponsored events.