We are experienced board members working across a variety of alternative investment strategies in onshore and multiple offshore jurisdictions.
SFA has been vetted and supported by many of the largest global allocators and consultants.
We manage our capacity carefully, below industry norms, to be available for clients, especially during periods of market stress.
We are knowledgeable directors in key offshore jurisdictions, including the Cayman Islands, BVI, Bermuda and Ireland. AlI SFA directors are registered with CIMAa n d can serve on any Cayman domiciled fund entities.
We bring investment management and operational due diligence experience that is highly valued by fund investors, complimentary to board skill sets and a helpful resource to managers.
SFA is wholly owned by the principals and is not affiliated with any other businesses that would represent a conflict of interest. We take conflict mitigation seriously.
At SFA, we encourage and support active engagement in complimentary roles, such as ODD, to further enhance our governance capabilities. We always seek to achieve a win-win outcome for managers and investors.
We are located in the New York area to be close to the networks that matter to our clients. We work with managers that are based in North America, UK, Europe and Asia.
The alternative investment funds industry has undergone a sea change since the liquidity crisis of 2008. The regulatory burden has increased enormously and fund strategies and structures have grown far more complex. Against this backdrop, the issue of effective fund governance has become the focus of attention for investors, regulators, counterparties and creditors . These parties are increasingly vocal in their demands that boards meet industry best practice standards, which requires true independence, as well as substantive and active engagement to effectively oversee fund activities and protect investor interests. Investment managers are also recognizing the benefits of a robust, diverse and experienced board that can help navigate the ever-growing regulatory demands, meet investor and allocator expectations and provide valuable insights and guidance on any matters that may arise.
SFA works with funds of various sizes. We work with start-up and emerging managers as well as some of the largest ...
Read MoreSFA has worked across multiple offshore and onshore jurisdictions on a wide variety of fund structures, including ...
Read MoreSFA has experience on onshore US and numerous offshore jurisdictions, including the Cayman Islands, Bermuda, ...
Read MoreSFA has experience across a wide range of alternative strategies. We have served as directors for strategies ...
Read MoreIt is a privilege to act as stewards for a fund. We ensure our availability to our clients by capping the number of ...
Read MoreWe are highly experienced independent directors bringing more than 35 years of alternatives experience ...
Read MoreWhile many jurisdictions either require or strongly encourage independent directors, we believe the mandate of an independent director should be to add value to all stakeholders. For managers, independent directors can reduce risk by identifying and providing oversight for areas that have inherent conflicts of interest (e.g., the fair valuing of fund assets, non-standard transfers between funds, trade and expense allocation issues). A good board should also be offering sound and pertinent advice, including proposing solutions related to governance, providing peer group data and other current best practices. For investors, independent directors interact with the fund’s service providers to safeguard assets and make sure that operations are conducted in the best interests of the fund. Ultimately, if a fund’s directors aren’t adding value, the fund has the wrong directors.
Our research suggests that while most fund boards have multiple independent directors, they often have directors with similar backgrounds. For example, the vast majority of independents have accounting or legal expertise. This can be genuinely helpful, but having two auditors or two lawyers may be non-optimal. Likewise, directors often reside in the same locations and tap into the same local networks. Accessing directors in different locations, networks and professional roles helps balance and add value to boards.
A multi-disciplinary director is one who sees governance as part of a portfolio of roles in the alternative investment industry. The cross-fertilization of these roles allows them to bring added experience and perspectives to their role as a director. Such roles could include, for example, providing operational due diligence (“ODD”) services to institutional investors, or providing fund formation consulting to investment managers. Their involvement in complementary and active roles, combined with their fund governance experience is their unique “value-add.”
The SFA emphasis on multi-disciplinary directors creates a more collaborative relationship between ourselves and our clients. We are looking to foster “win-win” situations where the knowledge and experiences of our team can help the manager and the fund succeed.
No, directors of a Cayman Island domiciled fund do not need to be a resident of the Cayman Islands. All the directors at Sound Fund Advisors are based in the US and serve on the boards of Cayman Islands domiciled funds. In fact, many investors prefer the further diversifying effect of a geographically split board.
Managing capacity is an issue that all directors face. We believe that effective directors will need to prioritize their commitment to governance. Sound Fund Advisors Directors typically have a smaller portfolio where they offer a more consultative governance approach to the Funds they serve. Since these external roles are by nature, part time, it allows the Sound Fund Advisors Director to balance those professional commitments with great care.
SFA is committed to Environmental, Social and Governance (“ESG”) goals. Our mission is to provide governance solutions for clients while integrating socially responsible and environmentally focused practices. We believe it is our responsibility to offer our time, expertise and financial contributions to positively effect change in our society and environment.
SFA has committed to a paperless work environment to reduce environmental waste. All staff members ...
Read MoreSFA has established a strong culture that emphasizes Experience, Integrity, Partnership, Trust and Passion. ...
Read MoreSFA directors adhere to our industry standards of professional conduct. All directors are registered ...
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