Fund Formation
Forming an investment fund requires more than just raising capital—it demands a thorough understanding of the legal, regulatory, and structural complexities involved in managing investor relationships and maintaining compliance. At PKC, we specialize in guiding clients through the entire fund formation process, ensuring their funds are structured to align with their goals while minimizing legal risks. Our fund formation legal team has deep experience in setting up various types of funds, including venture capital and private equity funds.
Comprehensive Fund Formation Services
Our services are designed to support fund managers, sponsors, and investors through every phase of fund creation and operation, including:
Entity Structuring and Formation: We help you select and structure the appropriate legal entity for your fund, whether it be a limited partnership, LLC, or another vehicle, ensuring tax efficiency and compliance with investor needs.
Regulatory Compliance: Compliance with securities laws, including registration exemptions, is critical for any fund. We assist with navigating complex regulatory requirements, including federal and state securities regulations.
Offering Documents and Subscription Agreements: We prepare private placement memoranda (PPMs), subscription agreements, and other key documents, ensuring that they are clear, compliant, and protective of your interests.
Investor Relations and Governance: We draft partnership agreements, operating agreements, and other governance documents to facilitate smooth fund operation and protect the interests of fund managers and investors alike.
Ongoing Compliance and Reporting: Once your fund is established, we provide ongoing legal support to ensure compliance with regulatory requirements, including SEC filings, investor communications, and reporting obligations.
The Fund Formation Process Explained
Initial Planning and Strategy: The process begins with understanding your investment goals and the structure best suited for your fund. This phase includes discussions on potential investor profiles, capital commitments, and regulatory considerations.
Entity Formation: After determining the appropriate structure, we assist with forming the fund entity. This step involves setting up the legal framework, including filing with relevant state authorities and drafting the governing documents.
Preparation of Offering Materials: We create the offering documents that outline the terms of the investment for potential investors, including the PPM, limited partnership agreements, and subscription documents. These materials detail the fund’s objectives, fees, governance, and legal rights of all parties involved.
Regulatory Compliance: Navigating federal and state securities regulations is essential to avoid legal pitfalls. We ensure compliance with the necessary registration exemptions, such as Regulation D, and guide you through filing Form D with the SEC if needed.
Fundraising and Investor Relations: Once the fund is formed, the next step is securing capital commitments. During this phase, we support you in negotiating terms with investors, ensuring all legal documents are signed and that the investment complies with securities laws.
Closing and Launch: Once investor commitments are secured and all legal documents are executed, the fund can officially launch. After closing, we assist with ongoing legal needs, including investor reporting, regulatory filings, and compliance with governance structures.
Why Choose Our Services
Depth of Experience: With extensive experience in fund formation, we understand the nuances of various fund types and can tailor our services to meet the specific needs of your fund.
Regulatory Insight: Our team has a thorough understanding of the complex regulatory landscape surrounding fund formation and can ensure your fund complies with all applicable laws.
Tailored Solutions: Whether you're forming a venture capital fund, private equity fund, or another investment vehicle, we provide customized legal services designed to meet your unique goals and challenges.
Commitment to Success: At PKC, we are committed to building long-term partnerships with our clients. We don’t just help you form a fund—we’re here to support you throughout its lifecycle, ensuring your success at every stage.
For fund sponsors and managers seeking trustworthy legal counsel, Peters Kussmaul Crosier offers the comprehensive guidance needed to structure, launch, and manage a successful investment fund.