A financial times article points out the headwinds new funds are facing when raising capital. With investors gaining an increasing upper hand expectations are higher and terms are more unfavorable for managers. With higher expectations come bigger liabilities.
Start up funds need to carefully manage their operating funds, choosing the correct insurance program is important. Working with an expert like CoverFunds.com allows operators to choose to take additional risk or scale back coverage terms to decrease fixed costs.
Hedge funds should be careful not to pay for coverage they don’t need, buy direct from the experts and find the most affordable coverage for your firm. Not all coverage is created equal, officers of a fund need to take a calculated risk and weigh the costs and benefits of any potential insurance program.