Schulte partners Christopher Hilditch, Anna Maleva-Otto, Nick Fagge, Joseph A. Smith and special counsel Daniel Daneshrad have contributed to the Chambers Alternative Funds 2020 Global Practice Guide. Christopher Hilditch served as editor of the guide, which covers 19 jurisdictions and discusses fund structures, cryptocurrencies and non-traditional assets, tax regimes, double-tax treaties, disclosure/reporting requirements, fund managers, permanent establishments, marketing and the FATCA/CRS compliance regime.
Introduction — Chambers Global Practice Guide: Alternative Funds 2020
Christopher Hilditch, Schulte Roth & Zabel
At the beginning of 2020, many alternative (or private) fund managers might have been cautiously optimistic. In the year ending 31 December 2019, hedge funds had seen average returns in excess of 12% which, whilst not stellar compared to the extraordinary returns seen in the market, was a welcome return to good performance after a number of years of poor returns. Private equity funds also showed double digit returns over one-year, three-year, five-year and ten-year time horizons. Of course, some strategies performed better than others — macro and long equity amongst hedge fund strategies and buyout among private equity strategies.
UK: Law and Practice
Christopher Hilditch, Anna Maleva-Otto and Nick Fagge, Schulte Roth & Zabel
The UK is the largest asset management center in Europe, second only to the United States globally and, within Europe, is especially dominant in the hedge fund market, both for managers and investors. The UK is home to alternative asset managers and investors in every sector, including asset allocators and other advisers representing investors from all over the world, and provides a welcoming and sophisticated regulatory, tax and business environment from which to manage or invest in alternative funds.
USA: Trends and Developments
Joseph A. Smith and Daniel Daneshrad, Schulte Roth & Zabel
It is often commented that the COVID-19 pandemic has only accelerated recent trends, and this has proved true in the alternative funds space. As the private capital markets continue to grow, and GPs continue to lock up more long-term capital, the private equity industry may find itself in an ideal position to promote economic stability and long-term growth during, and in the wake of, the ongoing pandemic and other times of instability.