Example 1 – US quantitative hedge fund launch in the UK

US quantitative hedge fund launches London operation within four weeks

Situation

A US hedge fund was looking to open a London office in order to integrate additional local traders to seamlessly complement its existing strategy in New York. The hedge fund was in need of an immediately available turn-key structure including regulatory license, framework and office space.

Client goals

An immediate go-live via a simple service provider offering, commencing with fund formation, structuring, legal, compliance and regulations and office management services being provided.

Barriers to success

The average time frame for the implementation of such a project can 10-12 months with start-up costs of £500-800k. Due to regulatory reasons, the portfolio managers and traders would be unable to trade during the preparation time, potentially harming the client’s ability to attract top talent and take advantage of market dislocations.

Solutions provided

Lawson Conner provided a one-stop solution to the client, comprising of: regulatory infrastructure, managed compliance services for trade reporting and post trade surveillance, risk management program, compliance support, training & development, office space, regulatory filings.

Results

The client was able to start trading within five weeks, introducing a new investment strategy to its investor base.