WHAT IS A SERIES LLC AND WHY SHOULD I CARE?

When you structure a fund, generally it is some sort of Limited Partnership or more commonly, Limited Liability Company. There is a special type of LLC that was first created in 1996 in Delaware in order to help the Mutual Fund industry avoid multiple SEC filings. It is called a SERIES LLC.

The idea behind a Series LLC structure is that you create one single entity, but within that entity are multiple “Series” which each have their own segregated assets and liabilities. What you effectively get is the ability to setup different entities within a single “Umbrella” LLC. For asset managers and fund management, it provides operational and administrative efficiencies when you are launching multiple structures with a common owner / operator.

Here at Fundviews Capital, we already have a Series LLC setup, and allow new “Investment Managers” to piggyback on the efficiencies that have already been created by the structure. The legal cost and time to launch is a fraction of the overall cost that it usually takes to launch a full fledged fund. You already have 3rd parties lined up and ready to service the new Series immediately such as fund administrators, auditors etc. Each 3rd party generally enjoys the benefits of the structure’s scalability as well, and usually will provide their services at a reduced rate. Finally, it is a breeze to open a new “Sub-Fund” bank account given that the main structure has already been launched.

Series LLC structures are getting more and more common, but many people still have never heard of them (even in the industry). Reach out to Fundviews Capital to understand them better, and launch your fund today!

**The above reflects the personal opinions of the author, and is not to be considered investment or legal advice or advice of any kind.