Part 3 of a 3 Part Series
What is a hedge fund?
A hedge fund is a fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Hedge funds are exempt from many of the rules and regulations governing other mutual funds, which allow them to accomplish aggressive investing goals. They are restricted by law to no more than 100 investors per fund, and as a result most hedge funds set extremely high minimum investment amounts, ranging anywhere from $250,000 to over $1 million. As with traditional mutual funds, investors in hedge funds pay a management fee; however, hedge funds also collect a percentage of the profits (usually around 20%).
Part 2 of a 3 Part Series
What exactly is an “angel investor”?
Entrepreneurs who launch smaller-scale enterprises know that commercial banks generally don't lend funds to ventures with little or no assets, customer base or sales track record. And venture capitalists typically work with business concepts that are already up and running with the potential for multimillion dollar revenues. Many of the owners of smaller firms have heard that “angel investors” can provide funding and even some much-needed expertise and referrals for these in-between business deals. So who are these people and what kinds of investment terms can owners expect?
This slide show is intended to provide a brief overview of a proper business executive summary as seen from the point of view of prospective investors. Catalyst Law Group is a dynamic San Diego business law firm that is uniquely positioned to serve domestic and international business clients. We hope you find these slides helpful for business planning purposes.
Over the past several years the IRS has had several high profile victories in cases involving taxpayers’ use of family limited partnerships or LLCs as vehicles to achieve valuation discounts to reduce the tax upon transfers of wealth to their heirs. Many of these rulings have come out of “bad facts” cases where the taxpayer either did not respect the formalities of the entity or there was no real purpose to the entity except to achieve tax savings. However, in the recent case of the Estate of Mirowski v. Commissioner of Internal Revenue, T.C. Memo 2008-74, the Tax Court issued a favorable ruling to the taxpayers and rejected many of the arguments the IRS.
My name is Michael Lane, and I am an associate with Catalyst Law Group, APC, in San Diego, CA, and a member of the Urban Land Institute’s Young Leaders – San Diego Chapter. In a past life, I worked as an assistant project manager for two real estate development firms of varied size on several residential and commercial projects of varied complexity. Currently, I head Catalyst’s Sustainable Building initiative.
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