Helping Advisers Use Private Funds to Propel their Growth

Expand Your Offerings • Give Your Clients an Edge • Control Your Destiny
  • Expand Your Offerings
  • Give Your Clients an Edge
  • Control Your Destiny
SCHEDULE A CONSULTATION

At Alta Trust we believe every adviser should be able to package their investment expertise within exclusive investment opportunities for their best clients. Most high net worth individuals have acquired their wealth through private investments yet many advisers don’t offer a way to invest in private funds. With our Private Fund solutions, adviser partners can expand the range of investment opportunities they offer to their clients. Private Funds give advisers a true advantage by enhancing their brand and positioning themselves to attract more high net worth clients since information about the strategy and deals isn’t available to the public. Plus, Alta Trust’s expertise and resources make launching a fund simpler, faster and less expensive.

Discover how launching your own private fund can propel your growth.

When you work with Alta Trust you can expect…

Simple
Process

Launching a private fund can be complicated. We have all of the pieces and process needed to launch a Private Fund covered by our in-house team freeing you up to find the right investments.

Expert
Consulting

Launching a Private Fund under a trust company provides additional regulations and oversight of the fund to protect you and your clients.

High
Quality

With some of the lowest startup costs in the industry and the ability to bill some of the costs to the fund, you can reduce your initial investment and liability.

DID YOU KNOW…

90% of the Forbes 400 built their wealth in private enterprise and real estate?

The Alta Trust Private Fund Plan

Discover Private Funds

Our team takes the time to listen to the goals you have for your clients and your business. Together we collaborate on setting up a private fund that is right for you.

Set the Course

Once we have the plan in place we go to work with stakeholder calls, document creation and private fund customization. Our team will answer questions and guide you each step of the way.

Work to Help You Win

When we launch your Private Fund our team supports you so you can continue to keep your clients happy and win more business.

“When launching Build’s Indexed Risk Control solutions, we brought the strategy and investment management and relied on Alta Trust for their fund establishment and administration expertise. Alta is a partner we trust and know we can scale with.”

– John Ruth, Co-Founder & CEO, Build Asset Management

 

Why choose Alta Trust for your private fund?

Most advisers want to offer exclusive opportunities to their best clients, but aren’t sure where to start. Setting up a private fund without a team to help can be expensive, time-consuming and confusing. Many advisers simply don’t know if it is worth the time.

Read More +

At Alta Trust we know many advisers envision offering their clients more than just standard investments, but don’t have a system in place to create and support them. Our Private Funds are simple to set up and carefully regulated. Our team is able to advise on opportunities as they come. Advisers may be interested in establishing hedge funds, private equity funds or real estate funds. Regardless of the type of private fund chosen, advisers are able to pool the buying power of their best clients providing them with unique investments while forging strong, long-lasting relationships.

Discover how launching a Private Fund can propel your growth today.

SCHEDULE A CONSULTATION

Frequently Asked Questions

What is the difference between an Alta Trust private fund and a limited partnership or LLC?

Private Funds are subject to the Reg D rules like an LLC or LP. The main difference is that the vehicle is a trust and not a partnership or limited liability company. The trust structure gives the Sponsor and the investors more protections and more exibility. For instance an Alta Trust Private Fund:

  • Provides for checks and balances by having a trustee (Alta Trust) in addition to the Sponsor
  • Gives the option of having the Private Fund pay the taxes internally or pass-through taxes to the investors
  • Is a turnkey solution
  • Is considerably more cost-effective than establishing a partnership
  • Provides a structure in which an RIA never takes custody

What types of investments can make up a Private Fund?

Virtually any type of security or investment can be held in a Private Fund. This includes equities, xed income, mutual funds, ETFs, international securities, options, futures, private equity, hedge funds, real estate and so forth.

What types of investors or accounts can invest in a Private Fund?

An investor must be an accredited investor ($1 million of net worth excluding personal residence or $200,000 in annual income) or a qualified purchaser ($5 million in investments) at the time of investment. As long as an investor meets one of these criteria, they can use virtually any account type to fund the investment.

Is there a limit to the number of investors?

To the extent that a Private Fund relies on the 3(c)1 exemption (accredited investors) the number of investors is capped at 100. A Private Fund relying on the 3(c)7 exemption (qualified purchasers) is capped at 1,999 investors.

Are there restrictions on fund subscriptions and redemptions?

There typically are but those restrictions are determined by the Sponsor. Subscriptions and redemptions must coincide with a valuation date, which is typically monthly or quarterly.

Can a Sponsor charge performance fees or invest in other offerings that charge performance fees?

Yes. If the Sponsor is a registered investment adviser (RIA), it can establish its preference for fees as long as the investors are all “qualifed clients,” which is an intermediate qualifcation between accredited investors and qualifed purchasers. Non-RIAs can charge performance fees without meeting the qualifed client rule.

What is the Sponsor’s role?

The Sponsor is equivalent to the managing member of a limited liability company or general partner of a limited partnership and is responsible for 1) implementing and overseeing the investment strategy, 2) directing the trustee 3) and gathering assets into the Private Fund.

What are the typical cost savings?

The savings on the set up costs may be as high as 50% in some cases. The ongoing administration cost depends on a variety of factors but is typically 25% less than the average hedge fund administration cost. When other services such as compliance, custody, and performance reporting are considered, the value is much greater.

Can differing fees be charged to investors?

Yes, this is accomplished by issuing different share classes.

I have multiple investment strategies that I would like to offer in a pooled trust fund. Can you do that efficiently?

Yes, we do that by creating a series offering for the Sponsor, which means there are a series of separate funds that are all governed by the same master trust document.

Is it permissible to advertise the Private Fund?

Yes, under recent laws as long as certain guidelines are followed.

Who does the Private Fund partnership accounting and the fund valuation?

Alta Trust handles all of the accounting and fund administration.

Is an annual audit required?

No, but it may be in the fund’s best interest to have one. Alta Trust will take the primary role in coordinating with the independent audit rm and supporting the audit.

Who handles the Private Fund compliance?

Alta Trust is responsible for the statements, which are usually sent to the investors monthly or quarterly.

Can the Private Fund pay a commission for new assets?

Yes, as long as the recipient of the commission is registered with a broker/dealer.

Do I have to be a registered investment adviser to sponsor a Private Fund?

No, many types of investment professionals, companies, or entities may sponsor a Private Fund.

We know finding the right partner to launch your Private Fund strategy is imperative.
​Don’t hesitate to reach out with questions. Our team is happy to have a conversation to hear your unique needs and goals.