On August 22, 2018 CFA Association organized a “Setting-Up and Operating a Private Equity Fund” Business Breakfast. During this event Michael Boboshko, NAIMA’s Chairman of the Hedge Fund Committee, was one of the key speakers, along with Adrien Parkinson, Chief Financial Officer of UFG Asset Management.
During their presentation, Michael and Adrien discussed some issues that could arise if the process of setting up a private equity firm was carried out without the right procedures and measures. Michael spoke about the importance of following a to-do checklist. The so-called private equity pre-launch "term sheet" has ten points, which range from a fund's investment period, management fees, to a NAV cycle. The next step of the process is picking the right jurisdiction for a fund. Currently, the Cayman Islands and the state of Delaware are two most popular places for setting up private equity funds with 61 percent of business entrepreneurs opting to base their firms in these two places, Michael said. With guests eager to ask questions and participate in the conversation, the presentation eventually turned into a two-way discussion.