Changing regulations and tax legislation are giving Chief Financial Officers and General Counsels a virtually impossible task. The private equity (PE) and real estate (RE) funds they oversee typically have large numbers of underlying special purpose vehicles (SPVs). Keeping track of shifting rules and laws is in danger of overwhelming the resources of some in-house teams.

During the recent market tumult, the asset management industry has no doubt been fully focused on realigning their investment activities to navigate the conditions and protect performance.

Traditionally, alternative asset managers have been classified by distinct types: hedge fund, private equity, credit or real estate managers, each having products and structures designed to coincide with the nature of their investment activities.

The historic DNA of a hedge fund has been that out-performance through the generation of absolute alpha justifies the 2/20 fee model and for the most part, the traditional fee model prevailed. But look a little closer and it becomes clear that the industry has evolved considerably from this single dimensional moniker, and hedge fund managers are creating new products and fee structures as the competition for investors intensifies.