Forbes – For hedge funds there are a number of factors that translate into long-term success. Topping the list is high-quality investment performance. Hedge funds are all about alpha. However, for business success and to produce a stellar track record, hedge funds need to raise capital and they must attract and retain exceptionally talented professionals.
The management company is the operating entity that hires the fund’s professional and administrative staff. It pays their salaries and provides various benefits programs. According to Evan Jehle, a partner in the family office group at Rothstein Kass, “Very often astute general partners use their management companies to deliver programs and advanced planning solutions that nurture and retain key talent. It’s also through the management company that the general partners usually structure continuation plans.”