Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Hedge Fund Valuation in Connection with Equitable Distribution

By Steven Cusumano

Over the past two decades, notwithstanding the recent economic downturn, the alternative investment industry has grown at a rapid pace, in terms of dollars flowing into the funds from investors, and the overall number of funds. Many former portfolio managers and managing directors of large investment banks have left their former institutions to establish hedge funds and other alternative investment outfits. These professionals are lured by lower levels of regulation and the ability to earn higher levels of income at an alternative investment firm than at a traditional investment bank.

Hedge funds now comprise a large portion of the alternative investment industry, and in connection with equitable distribution statutes, the valuation of a hedge fund management company and General Partner are becoming more important. Determining the proper value to ascribe to these interests is complex, and as will be discussed below, matrimonial attorneys should be aware that the value of an individual's interest in a hedge fund is often greater than just the value of his or her capital account. Additionally, given the turbulent economy, and specifically the volatility in the financial markets over the last three-plus years, hedge fund valuation presents several challenges in the field of business valuation for the purposes of equitable distribution.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.