Alternative Investment Funds

With more than 20 years of experience in the industry, our hedge fund team has a broad background in advanced fund structures — particularly international funds and complex investment types such as private equity holdings, derivative instruments and other alternative investments. We also regularly work with more than 30 fund administrators nationwide, as well as private investment funds who internally manage fund accounting and administrative services.
                                         
We offer a full-service solution. Our specialized audit team uses innovative testing techniques, the latest technology and a tailored approach to provide you with timely communications and value-added recommendations. Our tax professionals look at all aspects of your fund to determine whether opportunities exist to offer favorable tax solutions to the general partner/managing members and investors. And beyond our audit and tax services, we continue to aid in your success by consulting with you and offering industry-education forums throughout the year.

Client Profiles

We provide our services to private investment funds, including a variety of fund types, operational structures and investment compositions. Our representative client types include:

  • 3c1 and 3c7 funds
  • Long-short funds
  • Series funds
  • Fund-of-funds structures
  • Private equity funds
  • Offshore and international funds
  • Master-feeder funds
  • Venture capital funds
  • Multi-managed funds (use of multiple investment managers/sub-advisers)
  • Multi-class funds
  • Complex investment types and strategies:
    • Muni, corporate, asset-backed, mortgage-backed, high-yield and illiquid bonds (etc.)
    • Derivatives, including futures, options, commodity-linked securities and swaps (etc.)
    • Pass-through investments such as partnerships, QPTPs and REITs
    • Fair-valued securities, including private equity investments and operating companies
    • Investments in other investment companies, including investment partnerships, limited liability companies and fund-of-funds
    • International, global equities, and emerging market funds
    • Arbitrage funds

Services

We offer a range of services to hedge funds, private equity funds and other alternative investments:

  • Comprehensive audit services
  • Tax preparation and planning related to fund general partners/managing members and advisors
  • Preparation or review of federal, state, and local income tax returns and form K-1s
  • Consultation related to accounting and tax treatment of complex securities and derivative investments, various corporate actions, foreign investments, and trader vs. investor status
  • Consultation regarding U.S. tax withholding and related filings
  • Consultation related to onshore and offshore fund structuring, effectively connected income, ERISA and UBTI
  • Consultation regarding mergers and reorganizations and restructuring or amending organizational agreements

Offshore & International Fund Services

Cayman Islands’ Auditor Information – The Mutual Funds Law (2015 Revision) governs the regulations and requirements for certain funds which are established or incorporated within the Cayman Islands and registered with the Cayman Islands Monetary Authority (CIMA). CIMA requires all regulated mutual funds (which includes hedge funds) to have their accounts audited annually by an auditor approved by CIMA. Cohen & Company (Cayman) is an approved auditor by CIMA.

British Virgin Islands Information - Regulated entities which are governed by the BVI Financial Services Commission (FSC) includes hedge funds which may be licensed as either public funds, private funds or professional funds with BVI FSC. All private and professional funds (unless the fund meets certain FSC exemptions) are required to appoint an auditor and complete an annual audit of their financial statements which shall be filed with the FSC within six months of the funds year-end. In addition, an auditor of a private and/or professional fund is not required to be approved by the FSC. In the case of licensees and public funds, the proposed auditor must be an auditor approved by FCS. Accordingly, most hedge funds licensed with the FSC are typically private or professional funds which may be audited by Cohen & Company.