A Flood of Start-up Funds
(late 2005)

Robert Green, a non-lawyer member of Green & Company CPAs, LLC, says the increase in the number of fund managers he has as clients has little to do with the February 2006 deadline. 

“Most of our clients are small start-up funds, and they are still below SEC requirements,” he says. “Registration has always been a bigger issue in the media than in reality.” 

Because the clients most interested in SEC registration are larger funds, the rush to get everything in order has been far less apparent among smaller funds that are just starting out. Mr. Green says that he hasn’t seen a huge swell in the number of clients who want help with registering because the majority of smaller funds are already registered within their states. 

“There are maybe only 1,000 or so funds that need to register with the SEC,” he adds. What he has seen is an increase in the number of funds themselves, coupled with an increase in a demand for the amount legal service provided by the law firms working for the funds. 

“Hedge fund attorneys and accountants are in tremendous demand, and they need to do twice the work,” Mr. Green says. “Hedge funds are proliferating.” 

The high demand for attorneys who focus on small funds has its basis in geography, he says. Because smaller hedge funds are regulated on the state level, the attorneys who service them need to be knowledgeable about state-level regulations. But an attorney may be an expert in one state, but lacking knowledge in another. “So it’s hard to assemble supply to meet demand,” Mr. Green says. 

“It’s gotten more complex because of the democratization of hedge funds,” he adds. “Someone has to put together a coordinated national program. We have, but it hasn’t been easy.”


Darren, I bought the book and absorbed a lot of it. Your firm's writing and outreach are a testament to your experience and confidence, and I will be pleased to give you my complex tax filing business when that time arrives. I have really learned a lot in one day, from our conversation (I took detailed and organized notes) as well as the guide. For example, I would not have guessed that options on a commodity ETF (that's structured as a partnership) is probably a section 1256 contract. Your firm has the software and expertise to keep all this straight. Regards,