This course offers an overview of Hedge fund structures, and Income allocation to Fund’s Investors. We will touch upon basic concepts of type of funds, investors, share classes, capital activities, fees structures and step by step approach to process Economic Distribution of Income.

Topics Covered

  • Fund Structures: Stand Alone, Master-Feeders
  • Partnership funds vs Unitized Funds
  • Type of Investors
  • Share Class
  • Capital Activities
  • Ownership Percentage
  • Income allocation process
  • New Issue Income allocation
  • Fees Structures
  • Management Fees
  • Performance Fees
  • Highwater Mark
  • Hurdle Rates
  • Side pocket investments
  • Series roll up
  • Audit Holdback
Learning Objectives
  • Explore the definition and broad structure of a Hedge Fund as an investment vehicle.
  • Recognize fundamentals of funds set up as different legal entity types.
  • Explore concept of ECDI and steps involved in Income allocation to investors.
  • Recognize key elements of fees charged to investors.
  • Recognize impact of capital activities on ownership percentages.
  • Recognize concept of side pocket investments.
Last updated/reviewed: August 4, 2023
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1 Review (4 ratings)

Reviews

5
Anonymous Author
Thank you! The course was well-paced, and straight forward.
Prerequisites
Course Complexity: Foundational
- Basic understanding how Hedge Funds operate
- Basic knowledge of NAV Accounting
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Investors Allocation Accounting for Hedge Funds3:28
  Fund Structure9:45
  Capital Activities - Subscription and Redemption9:04
  Capital Activities - Income Allocation17:45
  Funds Fee Structure15:38
  Capital Activities - Performance Allocation8:00
  Capital Activities - Side Pocket Investments6:56
  Concept of Series Accounting and Audit Holdback13:05
  Recap5:42
CONTINUOUS PLAY
  Hedge Fund Accounting: Investors Allocation Accounting for Hedge Funds1:29:20
SUPPORTING MATERIAL
  Slides: Hedge Fund Accounting: Investors Allocation Accounting for Hedge FundsPDF
  Hedge Fund Accounting: Investors Allocation Accounting for Hedge Funds Glossary/ indexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam