Corporate / Hedge Funds

The hedge funds sector is undergoing a significant growth period, and the volume of assets in this sector continues to grow at a rapid pace.

The industry, which includes dozens of hedge funds registered in Israel, the Cayman Islands, Delaware, and other locations, is not subject to any direct regulatory supervision. However, the hedge fund model still requires a complex legal structure that differs materially from the traditional investment models previously known in the capital markets.

Our firm provides comprehensive legal services to local hedge funds registered abroad. We advise throughout all stages of the process, from the initial establishment of the fund and drafting its articles of association through to the preparation of management agreements, investment agreements, and agreements with various trustees. We also advise on an array of tax matters pertinent to hedge funds.

Although the founding of a hedge fund is not subject to Israeli law, when hedge fund managers seek investors in Israel, the fund must comply with the regulations that apply to communications with potential investors and to the marketing of hedge funds in Israel. Barnea has extensive experience in this field and routinely assists hedge fund managers with these activities.

As part of our work in the field, our firm serves as the legal advisor to the Israel Hedge Funds Association, a nonprofit organization that aims to represent and promote the common interests of those engaged in the hedge funds industry vis-a-vis the Israeli government and various government ministries.

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