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During the market crisis of 2008, many hedge fund investors rushed to the exits. Many fund managers raised gates to block the attempted redemptions to prevent a run on the fund. Investors holding gated hedge fund investments have an unusual opportunity to transfer wealth to their children while minimizing transfer taxes. With the potential for significant valuation discounts and the possibility of a rebound in returns, these individuals may be able to make lemonade out of lemons. This live, 90-minute Webinar will explore the valuation discounts available for hedge fund interests and how the discounts enhance wealth transfer strategies. What is covered - Sources of Illiquidity
- Liquidity of Underlying Portfolio Investments
- Differences Among Investment Strategies
- Liquid Securities vs. “Side Pockets”
- Transfer, Distribution and Redemption Policies
- Non-Transferability
- Reinvestment of Dividends and Sale Proceeds
- Hard and Soft Lock-Ups
- Scheduled Redemption Dates
- Use of “Gates,” Liquidating Trusts, and Other Mechanisms
- Valuation Discounts
- Key Factors Impacting Valuation Discounts
- Level of Control and Marketability of Underlying Investments
- Distribution and Redemption Policies
- Current Status and Recent Performance of Fund
- Expected Time-to-Liquidity
- Volatility and Risk
- Valuation Policy and Practice
- Empirical Data
- Restricted Stock Transactions
- Listed Private Equity Funds
- Closed-End Mutual Funds
- Secondary Market Trading in LP Interests
- Expected Discount Ranges
- Case Study
- Wealth Transfer Planning
- Grantor Retained Annuity Trust
- Sale to Intentionally Defective Grantor Trust
- Trustee as Accredited Investor
- Gift Tax Return
Education Objectives Participants learn how to: - How professional appraisers establish valuation discounts for hedge fund interests.
- Wealth transfer tax minimization strategies that take advantage of valuation discounts in hedge fund interests.
Recorded on November 5, 2009, this event is available on CD for purchase.
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