Welcome to Pepper’s Program for Emerging Hedge Fund Managers

Pepper’s unique ACORN™ Program (Asset management Compliance Operations Regulatory jumpstart iNitiative) is designed for emerging investment managers and their newly formed hedge funds.

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About Pepper's ACORN™ Program

Pepper Hamilton’s Program for Emerging Managers

In today’s equity and debt markets, there is a growing number of experienced investment management professionals looking to leave their institutions and set up their own asset management shops. Setting up shop and launching a private fund can be an exciting but daunting task. Where do you start, and where do you go for help?

Pepper’s ACORN™ Program is designed to bring an affordable package of resources to new hedge fund managers at the early stages of their operations. Our experienced, multidisciplinary team has represented hundreds of pooled investment vehicles. We understand what it is like to start a new endeavor, and we want our relationship to grow with you.

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ACORN™ Program Services

WHO IS ELIGIBLE?

Participation in the ACORN™ Program is limited to managers who do not have established business operations or who have less than $5 million in assets under management (AUM). Participation is limited to first-time hedge fund managers — those managers who have not personally established an asset management firm and/or set up a hedge fund-type investment fund within the last two years.

If you are a new manager, see the How the Emerging Manager Program Works portion of our ACORN™ Program.

If you already have an asset management business but want to set up a hedge fund, see the Hedge Fund Formation Program portion of our ACORN™ Program.

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How the Emerging Manager Program Works

A modest initial fee is applied as a retainer against initial counseling when the client is accepted into the program. This initial fee entitles the emerging manager to a suite of basic documents necessary to set up their asset management firm. These basic documents and services include:

  • Form of Formation Certificate
  • Form of Single Member Operating Agreement
  • Form of Code of Ethics
  • Form of Policies and Procedures for a single liquid-only investment strategy
  • Form of Investment Management Agreement for a single liquid investment strategy.

We understand, however, that one size does not fit all. Fees for customization services will be accrued at a significant percent off our standard rates, up to a cap. The accrued charges will be billed once the emerging manager hits $5 million in AUM.

How The Hedge Fund Formation Program Works

If you choose to open a liquid, open-end hedge fund-type fund, you are still eligible for the ACORN™ Program.

For a modest initial retainer, we will provide emerging managers with the following standard fund documents (customized with respect to descriptions of the managers and the risk factors):

  • Formation Certificate
  • Fund Limited Liability Company Operating Agreement
  • Fund Subscription Package
  • Form of Investment Management Agreement for a Hedge Fund
  • General partner formation as an LLC if the fund is to be formed as a limited partnership instead of a limited liability company.

Pepper will defer the payment of any fees in excess of the initial retainer up to a defined cap until the fund’s actual expenses are less than the 3 percent expense cap of the fund. Contact us for more details.

All other services that we may agree to provide, excluding litigation, will be offered at an agreed discount to our standard rates.

Learn More about the ACORN™ Program

Complete the online Questionnaire

If you are interested in learning more about Pepper’s ACORN™ Program and how it can help you start and grow your hedge fund, complete the online Questionnaire.

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Questions about the ACORN™ Program

Contact: ACORN@pepperlaw.com

More on Pepper Hamilton’s Private Fund Services Group.