Your own fund,
in three weeks.
Run your strategy as one private fund your firm manages. We handle the setup and the books, and prepare the tax forms. The bank, broker and auditor stay independent.
Why advisers do it
A premium product to offer your clients, a step above managing their accounts one by one.
One trade, not 600
The same decision, placed once for the whole fund instead of reconciled account by account. One audited track record instead of a composite.
Win bigger clients
A fund with your firm's name on it sets you apart when prospects compare advisers. A second strategy becomes a second fund, using the investor records you already have.
Keep your strategy private
In client accounts, every trade shows on the statement. In a fund, investors see their balance and their performance.
Some states require a quarterly list of positions.
Every client sees
Separate account
Investors see
Your fund
Balance
$412,806
Holdings
Held by the fund
Strategies client accounts can't run
Shorts, options, leverage and concentrated positions are impractical across hundreds of client accounts. In a fund, it's one brokerage account under one set of documents.
Get paid on performance
A fund can pay your firm a share of gains as well as a management fee, on the strategy you already run. Or keep it plain: a management fee and nothing else.
Performance fees are for qualified clients only.
Management fee
+ Share of gains
Illustration only.
A product only your firm can offer
Anyone can buy an index fund or a robo portfolio. A private fund with your strategy comes only from you.
You set the terms
Hurdles
Including an index hurdle, like charging only above the S&P 500.
High water mark
No performance fee until losses are made back.
Side letters
Different fee terms for a founding investor or a foundation, set out in writing.
Lockups, none to 3 years
Match withdrawals to the time your strategy needs.
There's no catch.
Setting up a fund used to mean several firms, tens of thousands of dollars and months of back and forth. Here is what changed.
01
Documents written once
Every fund uses the same kind of documents. Ours are generated around your strategy, your terms and your state's rules.
02
One team for the fund
Documents, books, tax forms and filings in one place, instead of several firms passing files back and forth. Most of the old cost was the handoffs.
03
The rules are in the software
Every state's rules, the audit route and the ADV changes a fund needs. Your firm still reviews and files.
04
The books never stop
Fund values and investor balances are kept every month, so year end is a report, not a rebuild.
Every other cost is listed below.
We run the back office
Fund administration is usually a separate firm and a separate bill. Here it's part of the price.
Books in 1 to 2 business days
We produce the fund's books within one to two business days of every month end: trial balance, investor statements, and pro forma K-1s and Form 1065.
Month end
Period closes
Day 1
Books reconciled
Day 2
Books delivered
A pro forma K-1 every month
Every month, each investor gets a pro forma K-1 and the fund a pro forma Form 1065, so nobody waits until spring to see their tax picture. We prepare the final forms after year end.
Pro forma K-1, every month
Connects to your broker
The fund's account sits at a broker that already works with advisers, like Charles Schwab or Interactive Brokers. Trades and balances come into the books without spreadsheets.
The fund's books
Trades, positions and cash, brought in for you
Investor onboarding
Your client fills in a form and signs online. No paper.
Investor portal
Balances, statements and documents. Free for your investors.
Audit support
The fund's independent auditor gets the books straight from us.
Filings
Form D and your state notices.
One price per fund
We never take a share of your fees. One simple price, charged to the fund, and the yearly fee on fund assets drops from 0.20% to 0.02% above $2M.
Delaware and state filing fees
Paid to each state
Varies by state
The fund's yearly audit
Independent auditor, at our partner rate. Typical audit quotes range from $17,000 to $25,000.
$8,000–12,000
Investor verification
Only if you advertise the fund
$100 per investor
Your own lawyer's review
Optional
Your call
What Hedgia charges
Investors pay nothing to use the portal.
Who's behind Hedgia
Shannon M. Kennedy
Chair of the Advisory Board
Former CEO of BMO Wealth Management U.S., overseeing $66B in assets.
Joe Neveril
Co-Founder
Attorney with 29+ years structuring companies in regulated industries. Former KPMG senior management, and former chief compliance officer of a $500 million fund of funds RIA.
Ayeman Kamal
Co-Founder
Former quantitative engineer at a crypto hedge fund. Built AI and data platforms at Robert Bosch.
Questions advisers ask
Can I see the documents first?
Yes. Read the full set before you pay, and send it to your own lawyer if you like.
Where are the fund's assets held?
At a custodian that already works with advisers, Schwab Advisor Services or Interactive Brokers, in an account in the fund's own name. Hedgia never holds them.
Does this give my firm custody?
Yes. Acting as a fund's managing member generally counts as custody under the SEC's custody rule. The rule lets a fund meet it through a yearly audit by an independent accountant registered with and inspected by the PCAOB, with audited statements sent to investors within 120 days of year end. State registered firms follow their own state's rule, and we give you a checklist for yours.
Is it a conflict to put my clients in my own fund?
Yes, and advisers who run their own fund say so in their Form ADV. Most also charge no advisory fee on money in the fund, so clients don't pay twice. They recommend the fund only where it fits, and tell clients they have no obligation to invest. We prepare your ADV changes for your firm to review.
Who can invest?
Accredited investors. Qualified clients if you charge on performance.
What can the fund hold?
Publicly traded securities: stocks, bonds, ETFs and options. Not real estate, private deals or futures.
How big does the fund need to be?
There's no minimum. On a $2M fund, our fees come to about $5,200 a year, plus the audit. Most firms line up first investors while the documents are prepared.
Who files the tax returns?
We prepare the fund's Form 1065 and every K-1. Your CPA reviews and files them, or you file them yourself.
What if Hedgia shuts down?
The fund is its own company, with its own bank and brokerage accounts in its name. None of it is held by us, and the books move to any administrator.
Your firm already has the clients.
Now it can have the fund.
SEC registered advisers in every state. State registered advisers in 35 states.
Find your firm
Enter your CRD number or firm name. We check the SEC's public adviser database.
Or see your fund's documents free before you pay.