Our team regularly speaks with emerging managers about purchasing D&O Insurance at the early stages of fund formation and the cost feasibility of such an investment.
Tags: advisory, brokerage, directors and officers liability, Directors & Officers Liability, emerging hedge fund manager, feasibility, hedge funds, Insurance, insurance, investor risk, Iron Cove Partners, Lou D'Agostino, protection, regulatory risk
Launching a hedge fund is no easy task. From drafting the formational documents to regulatory filings to selection of key and critical vendors, there is no shortage of things to do prior to launch. Add to that list evaluating the respective insurance needs of a start-up fund. Start-up firms must entertain insurance products which may be either required (either by state law, regulation or by contract) or lines of insurance coverage which are elective and may be meant for more established firms. The process of not only reviewing what each policy may or may not cover but also taking into consideration the cost effectiveness and feasibility in the early stages of the business can be daunting.
In order to make this process a bit smoother and add some value in the early phases of a launch, we have created an Insurance Needs for Hedge Funds Guide which can assist you in your efforts of addressing insurance needs in the start-up phase.
About the Author
Louis D’Agostino is a Partner and Senior Vice President of Iron Cove Partners, LLC. Mr. D’Agostino is responsible for the oversight and management of IronCove’s Financial Institutions Practice which is dedicated to addressing the unique and complex risk management needs of companies engaged in the arena of financial services. i.e. Private Equity Funds, Hedge Funds, Investment Advisors, Securities/Dealers, Mutual Funds and the like. Mr. D’Agostino & his team currently serve as insurance advisor to some of the world’s largest Asset Managers and Financial Institutions.
Tags: benefits, directors and officers liability, D&O, emerging manager, financial insitt, financial institutions, financial services, hedge fund, Hedge Funds, Insurance, insurance, Iron Cove Partners, Lou D'Agostino, office insurance