I've got a few questions about starting a hedge fund in Australia.
Heaps of stuff online about the Yanks, but not much relevant to us, here.
1/ What would be the best structure to incorporate the hedge fund?
As a Limited Liability Company (LLC) or Limited Liability Partnership (LP) or something else?
2/ Alot of US hedge funds are based "offshore" like in the Cayman Islands or Bermuda, etc. Do Australian-based hedge funds do the same? In the States, I don't think it's illegal to base offshore, but here it may be??
3/ Generally, what would be the standard range of charges to get a big4 accounting firm to audit your returns? $30k p.a. ? Would this include more sophisticated auditing such as real-estate, emerging market investments, and other illiquid investments?
4/ As a hedge fund, I understand a AFS License is required.
i) What are the minimum requirements for hedge fund investors? Are they only open to "sophisticated investors"?
ii) How do you know if a client is "sophisticated"? A letter from their accountant?
5/ As a hedge fund, is there any requirement/obligation to report the unit value of the fund on a basis more regular than annually? Or does anything go, as long as your investors are happy? Maybe quarterly is the minimum acceptable timeframe?
I will be speaking to an accountant about the above, but since the questions are not very specific, some answers from others on this board would be appreciated.