New Hedge Funds Allowed To Advertise To Investors; Take A Pass

Hedge funds are allowed to advertise for investors under the JOBS Act, but none of the new US hedge funds in a recent Seward & Kissel LLP study actually did so (the annual study is restricted to new funds), opting for founder capital and seed money instead. At least 40% of launches over $75 million had some amount of seed money, with a 2 – 3 year lockup on seed money being typical, and 43% of all funds in the study had some founders’ capital. Seed money ranged from $10 million to $150 million depending on the size of the…