Forbes – For a number of reasons, some hedge fund managers have converted to a family office structure. Dodd-Frank granted family offices an exemption that effectively excluded single-family offices from registration as investment advisors. Possibly enticed by lower compliance and disclosure requirements, a few managers of global funds have elected to convert.
To do so, they must meet two basic requirements, the first being that the fund be wholly owned and operated by immediate family members. These firms start of as “private investment companies,” and many of them morph into more comprehensive family offices.
