Fund Formation
Algo Legal has one of the most experienced group of lawyers focusing exclusively on fund formation. The team is uniquely positioned to deliver comprehensive solutions and addresses commercial, regulatory and tax aspects for investment funds across asset classes.
The Fund Formation practice consists of a multidisciplinary team including fund formation/ advisory focussed lawyers, chartered accountants and fund secretarial professionals. The practice brings together deep experiences in the structuring and set up of offshore and onshore funds focussed on Investments in India and South East Asia. The Algo fund formation practice advices in the set-up of angel, early-stage funds. venture capital funds, private equity funds and hedge funds.
The practice has worked extensively with the securities regulators governing private investments funds in India (the Securities and Exchange Board of India), Singapore (the Monetary Authority of Singapore), Mauritius (the Financial Services Commission), to name a few. Algo has a network of partners in fund jurisdictions of choice, which enables us to advise on fund formation and registration in a reliable and cost-efficient manner.
The practice has actively advised leading global venture capital funds in the establishment of their management/ advisory vehicles in India and S.E. Asia. The fund formation practice is proud to have advised in the structuring formation, registration and closing of the Leo Technology Fund, the first India and S.E. Asia focussed venture capital fund set up as a Variable Capital Company under the newly instituted fund regime of Singapore in early 2020.
How we help
Algo Legal could act as a single point lead and handhold the investment manager on fund commercials, legal, tax and regulatory aspects. A more segmented scope of services would be as follows –
Strategy:
- Guidance on market terms; fund raise strategies; evolving fund term sheet
- Designing comprehensive platform structure (fund, GP side, efficient extraction of team economics)
- Decision making processes
Fund documentation:
- Develop fund documents at pace with LP engagements
- Guidance on market terms on fund commercials during the documentation phase
- Overall regulatory, tax and commercial coverage
LP negotiations and closing formalities:
- Negotiating and drafting side letters
- Single point of contact for coordination with offshore counsels, administrators and placement agents
Extraction of economics for the team:
- Carry allocation strategy for members of the GP team
- Structural alternatives from tax and regulatory perspectives
- Setting up structures and drafting carry allocation programs
Compliance program:
- Drafting the compliance framework for the fund manager and separately for the fund(s) basis fund jurisdiction and those other jurisdictions where the fund has been marketed
