GERMANY – HVB Alternatives has established a structuring and due diligence service for third party hedge fund companies in light of the new German investment law.
The service offered to single hedge fund companies is designed to help them meet the requirements under the new law. It includes the examination of the structural and operational quality of alternative investment products by “focusing on hidden risks and cost e.g. liability clauses, fees, tax risks and compliance risks as well as by preparing the relevant legal documentation”.
HVB Alternatives will also give advice to hedge fund managers on how to best package or re-package a potential or existing alternative investment product to meet the criteria set by clients and investors in Germany.
A spokeswoman for the company said that the decision to offer the services was spurred by the requests from the market, and that, it is believed HVB Alternatives is the first company to have offered such a product.
The structuring group at HVB Alternatives is headed by Alexander Goetzinger and co-headed by Stefan Henrich.
The new German investment law is expected to become effective by January 2 2004. The law, which was issued this summer, provides the first legal framework for hedge funds in Germany. Currently hedge funds are unregulated.
The proposals will allow single hedge funds to be invested in via “private placements”, while hedge funds of funds will be available to retail and institutional investors.
HVB Alternative’s offering will also be available to hedge fund managers planning to enter other European markets.