Understanding Hedge Fund Fees: Implications for Hedge Fund Managers
K&L GATES
EA
INDIVIDUAL SERIES ACCOUNTING
ā
Individual series accounting is effectively
using partnership accounting for offshore
funds. Each investor receives an individual
series of Shares which is accounted for exactly
as a partnership capital account, without the
"noise" of having to maintain a uniform NAV per
Share.
Downside: the audited financial statement
footnotes for the offshore fund will have to list
each individual series (although not, of course,
identifying the investors).
Unexpected Boon: With individual series, you
can make virtually any restructuring changes you
want without need of a vote. Each investor - for
voting purposes owning his/her own class of
Shares - simply decides (as a "majority of one")
whether to go into whichever options you may
offer.
klgates.com
24
24View entire presentation