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Hedge Fund ‘Start-Up Kit’ Launch

SKCG Group, the risk management and insurance advisor to some of the world’s largest hedge funds, has designed a program for hedge funds that includes a ‘Start-Up Kit’ for emerging managers. The program grows in sophistication as the fund’s assets under management and the number of employees increase. It is based on SKCG’s detailed analysis of the hedge fund industry’s insurance needs, from launch to their becoming multi-billion dollar asset funds.

“We created this program to give hedge fund managers a clear understanding of their options every step of the way,” commented David Parker, President of SKCG’s Employee Benefits Division. “When hedge fund managers launch their funds, they face abundant responsibilities and requirements. Our ‘Start-Up Kit’ is designed to take their risk management and insurance concerns off the table so they can concentrate on raising assets and managing their funds,” said Parker.

Some pre-launch concerns among hedge fund managers include purchasing property/casualty and liability insurance, workers’ compensation, medical coverage, as well other basics such as payroll administration. According to SKCG, more start-ups are also acquiring Directors and Officers and Errors and Omissions (D&O/E&O) Professional Liability coverage.

SKCG’s program then points more established hedge funds toward key person life insurance as an important component in the management of risk, alongside business succession planning and sophisticated pension and non-qualified deferred compensation programs. SKCG plays an important advisory role through each stage of growth, and provides hedge fund managers with “benchmark reports” showing the coverage and services that other hedge funds are buying. Especially in the current regulatory environment, making the right choices is more important than ever.

“Even at the beginning, providing the right coverage requires an experienced eye. The challenge is in being able to anticipate problems and respond quickly. If the hedge fund manager wants to sign a lease tomorrow, our analysis team needs to read every page of it today and comment accordingly,” said Mr. Parker.

SKCG developed its “Start-Up Kit” as the number of new hedge fund launches is increasing and industry assets under management recently hit $2 trillion – the level reached before the 2008 credit crisis.

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One Response to Hedge Fund ‘Start-Up Kit’ Launch

  1. HBG says:

    A transparent marketing gimmick illustrated as a weak concept in my opinion. An Insurance for Dummies strategy is not what I would be looking for in a business advisor and I personally dont care about the stages of progression or metrics showing the same old same old from the competition. If I want to attract the biggest and best, I need the biggest and best innovatiive total compensation program for all levels of talent end to end. Compartmentalizing coverage into stages and basing benefits on the firm’s AUM is a mistake made by many and does not reflect the kind of outside the box planning I would be looking for. It merely highlights an unsophisticated lack of understandiing my critical business needs. I wouldn’t be looking for an advisor who wastes my time on sales themes like “Start-Up Kits”; even in it’s concept it’s demeaning. I need a savvy business partner who would do what needs to be done quickly and efficiently to place my fiirm in the most attractive light possible, especially in today’s competitive recruiting environment. That’s what would take my concerns off the table. Sorry but I get annoyed at these type of contrivances. Perhaps they appeal to others.

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