STA Fund Management (STAFM) – part of the Schneider Trading Associates Group founded by Sonny Schneider in 1998 to provide trading access, administration and a regulatory framework to hedge funds – has launched what it calls “a hedge fund incubation platform.”
STAFM says that any hedge fund that meets its due diligence requirements can be set up and trading within as little as four weeks, using an existing FSA-regulated entity. While STAFM takes care of the operational, compliance and finance-related issues of running a hedge fund, potential investors will find many of their due diligence boxes ticked, and the fund manager will be able to concentrate on raising capital and managing the fund.
“The platform means we can provide the comprehensive infrastructure required by today’s investor, in a flexible and cost-effective format, and with fewer assets under management than would otherwise be necessary,” says Shabir Chowdhary, Head of Sales & Marketing at STAFM.
In addition to offering a regulatory safe harbour, the STAFM Hedge Fund Incubation Platform aims to provide new hedge fund managers with office space in the City of London, a full technology and hardware platform, proprietary trading platforms providing direct market access and telecommunications, recorded telephone lines, dealer boards and high-speed internet access. Fund managers will be able to use the in-house execution capability provided by STA’s network of dealers in a variety of instruments and on a number of equity and derivative exchanges.
The manager will plug directly into STAFM’s platform of service providers, including prime brokers, lawyers and administrators, and will benefit from existing operational, accounting, business, administrative, compliance, risk management and IT support. STAFM can even help create marketing materials, write press releases, prepare marketing road shows, and facilitate and follow up on investor meetings.
“STAFM will provide such services without prospective managers losing control of their destiny or parting with a significant proportion of their revenue,” says Patric de Gentile Williams, CEO of STAFM. “Although STAFM was established to assist start-ups, most of its services can be used by existing hedge funds looking to reduce the burden and cost of regulation, infrastructure and administration.”