The alternative investment industry continues to innovate, mature, and grow. But with heightened government regulation and scrutiny, and increasingly sophisticated and demanding investors, investment managers must navigate complex and novel legal issues to be successful.

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Pryor Cashman's Investment Management Practice provides comprehensive legal representation to both established and emerging investment management firms so they keep pace with regulatory and competitive developments. We anticipate the issues investment managers will face, and we respond nimbly with creative solutions.

We have been recognized as a premier practice in the U.S., offering exceptional service and receiving high praise in three categories (Best Onshore Law Firm, Best Onshore Law Firm for Client Service, and Best Onshore Law Firm for Hedge Fund Start-Ups) from HFM in its annual Hedge Fund Services Awards competition.

What We Do

With clients ranging from emerging managers to leading global investment firms managing billions in assets, our investment management attorneys advise clients in all aspects of their asset management businesses.

Pryor Cashman attorneys help investment managers with launching new private investment funds and negotiating separately managed accounts. We advise RIAs and CTAs on their compliance obligations and guide clients who look to form new investment advisers, bring on senior executives, or spin out from or join established advisory firms. And we extend the reach of general counsels and internal operations teams by bringing their most complex projects to successful completion. 

In addition, our investment management team is a trusted resource for investors when they evaluate their investments into private investment funds.

Finally, in the event of disputes, our litigators are vigorous advocates for our asset management clients, with a proven record of success.

Private Investment Fund Launches

Pryor Cashman attorneys help clients structure and establish funds across the full spectrum of domestic and offshore alternative investment vehicles, applying an unusually deep insight into their operations. We have assisted clients in launching:

Regulatory Support

We advise on the federal and state laws and regulations applicable to investment advisers and private investment funds - including the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Securities Act of 1933 (including Regulation D), the Securities Exchange Act of 1934, and the Commodity Exchange Act. As the industry adapts to Dodd-Frank reforms and the JOBS Act, we have emerged as thought leaders in analyzing and anticipating the practical implications of regulatory change.

Assistance for Investors

We assist investors in evaluating and negotiating the terms of their investments in alternative investment vehicles. Whether the client is a fund of funds, pension plan, endowment, family office, or high net worth individual investor, we use our familiarity with private fund structures and operations to guide our clients in understanding their rights and obligations and to obtain the benefit of appropriate side letter protections.

Litigation and Investigations

Pryor Cashman litigators have earned their reputation as formidable advocates in the investment management arena, representing many leading investment managers and funds and achieving decisive victories in some of the most significant cases in the industry. Our experience includes:

  • Leading SEC enforcement and clawback actions and bankruptcy adversary proceedings related to the Madoff, Bayou, and Petters Ponzi schemes
  • Establishing new law in numerous actions concerning the treatment of investor redemptions
  • Obtaining summary judgment on behalf of a leading credit fund in a multiforum action in connection with complex seniority disputes
  • Obtaining the dismissal of a 12-count $10 million dollar complaint against multiple investment funds concerning alleged prefunding and fraudulent transfers
  • Obtaining a permanent injunction on behalf of one of the largest global asset management firms in a trademark infringement action
  • Resolving a $25 million breach of contract action involving senior subordinated convertible note obligations in connection with a reverse-merger transaction
  • Resolving a multimillion dollar breach of contract arbitration on behalf of an alternative asset fund concerning the operations of options trading accounts

Additionally, our litigators have represented financial institutions and their officers and directors in a wide variety of securities class actions and SEC and Department of Justice investigations. We also represent investment advisers in hearings before FINRA, AAA, and the New York Stock Exchange.

Special Projects

Our attorneys’ transactional experience covers a wide range of alternative investment projects. We have:

  • Represented a California-based lending and investment firm in its $250 million joint venture with an $80 billion private equity group
  • Represented a private investment fund in taking over as the managing member of a complex of more than 130 special-purpose private equity vehicles with an aggregate AUM exceeding a quarter of a billion dollars
  • Advised a $1.5 billion alternative asset management firm on changing the registered investment adviser for its fixed-income advisory business, thereby streamlining the rollout to approximately 90 separate account clients
  • Developed operating and offering documents to “ERISA hard-wire” a family of enhanced benchmark funds managed by a $30+ billion multi-strategy alternative asset manager
  • For a leading “first-loss” multimanager platform, assisted in structuring its fund and prepared  operative and offering documents, including the template investment management agreement for use in onboarding new managers