How it works
Your strategy stays confidential
Run a strategy across separate accounts and every client statement carries a copy of your positions. Pool it in a fund, and the holdings belong to the fund. Investors see their capital account, not your live positions.
Separate accounts today
Visible to every clientEvery position and weight, in every client’s hands.
Your fund on Hedgia
Confidential to the fundHoldings stay confidential to the fund.
Quarterly statements listing the fund’s positions may still apply, depending on your state. Your state card tells you whether they do.
What your firm gains
A premium product for the clients you already have
Your best clients get your best strategy in a fund. Your firm gets a higher-value offering and the economics that come with it.
Earn on performance
The fund can pay an incentive allocation on gains, on top of your management fee, to the managing member your principals own.
Offer your best strategy
Options, shorts and concentrated positions that are hard to run across dozens of separate accounts, in one vehicle.
Keep clients in-house
Clients looking for private funds find one at their own adviser, not somewhere else.
Stand out
A proprietary fund sets your firm apart when prospects compare advisers.
Also: trade once instead of forty times, one track record, and holdings that stay private.
The part advisers worry about
The compliance a fund brings, prepared for your review
A fund changes your Form ADV, gives your firm custody and brings in your state’s rules. Hedgia prepares each piece. Your firm reviews and files.
Form ADV amendment
Drafted from your filed brochure and the information your firm provides, redlined for the fund with the reason for every change, for your firm to review, revise and file.
Custody and audit
The fund is set up to use the custody rule's annual-audit approach, with introductions to independent auditors. Your checklist adds anything more your state requires.
Your state's rules
A checklist built from your CRD and home state, each item citing its rule, for your firm to work through and confirm.
No money before you're ready
Investor invites stay locked until your firm confirms every checklist item is complete.
The Advisor offers its services to individuals, trusts, estates, charitable organizations, and corporations or other business entities. entities, and to a pooled investment vehicle, the Fund.
The client list must now include the Fund. SEC 7.1
What you’re buying
Who does what
Your firm
- Runs the strategy and trades the fund
- Keeps its registration and compliance program
- Reviews and files the Form ADV amendment
- Brings the fund to its clients
Hedgia
- Drafts the Form ADV amendment
- Forms the entities and opens the accounts
- Files Form D and the state notices
- Administers the fund: investors, books, audit coordination and tax preparation
Hedgia is the fund’s administrator and document-preparation platform. It does not act as your firm’s investment adviser or law firm, and your firm remains responsible for its own filings and its own compliance program.
What the platform carries
Fund documents
PPM, operating agreement, subscription agreement and IMA.
Form ADV package
Redlined Parts 2A and 2B, and your Part 1A answers.
Entities and accounts
Delaware entities with EINs, and bank and brokerage accounts.
Filings
Form D and state notices, filed and renewed.
Investor portal
Subscriptions, accreditation and statements. Free for investors.
Accounting and tax
NAV, capital accounts, coordination of the annual audit with the fund's independent auditor, and Form 1065 and K-1s.
Availability
Check your state
See whether your firm can launch today and what your state adds.
35 states open for state registered firms. Every state and DC for SEC registered firms.
- Your checklist follows California's rules.
- Each fund investor gets a quarterly statement from your firm that lists the fund's positions.
- Your checklist adds any net worth, bond or representative registration your state requires.
One price per fund
The asset fee tiers down as the fund grows. The fund can bear these fees, and Hedgia never takes a share of your fees. Fees of third-party providers, such as the fund’s independent auditor and state filing fees, are borne by the fund at cost and are not included in Hedgia’s fees.
Questions advisers ask
Does running a fund give my firm custody?+
Yes. Hedgia sets the fund up to use the custody rule's annual-audit approach. An independent, PCAOB-registered auditor audits the fund each year, and your firm distributes the audited financials to investors on time. Your checklist adds any extra duty your state has.
Do I have to amend my Form ADV?+
Yes, before the fund is offered. Hedgia drafts it from your filed brochure. Your firm reviews it and files it on IARD.
Who can invest?+
Accredited investors, and qualified clients when the fund pays an incentive allocation.
What happens to my separate accounts?+
Nothing. The fund runs alongside them.
Can I run more than one fund?+
Yes. Each strategy can be its own fund, priced per fund.