Kelli Moll Quoted in Fund Fire Alts on Concerns for Start-Up Hedge Funds Seeking Seed Capital

Kelli Moll, a partner in Akin Gump’s investment management practice, was quoted in the Fund Fire Alts article “Be Cautious with Seed Capital, Start-Up Hedge Funds Warned.”

The article addresses some concerns for start-up hedge funds when obtaining seed capital from investors, since those who provide funding often seek concessions in return. It’s noted in the article that lawyers should be consulted before any discussions commence. Moll said those talks should be broad ranging, including “how long the lock-up is, and what will be the seeder’s liquidity rights.”

Also of concern, Moll said, is an “early liquidation event” and anything that might trigger it, which she said can include regulatory or reputational issues, litigation filed against the manager and performance drawdowns. She added, “All of these things have to be carefully negotiated.”