SKCG developed its “Start-Up Kit” as the number of new hedge fund launches is increasing and industry assets under management recently hit $2 trillion – the level reached before the 2008 credit crisis. According to a press release, the customized program provides insurance, employee benefits, and risk management for emerging hedge fund managers.
The program grows in sophistication as the fund’s assets under management and the number of employees increase, the announcement said. The program is based on SKCG’s detailed analysis of the hedge fund industry’s insurance needs, and SKCG plays a significant advisory role through each stage of growth from the fund’s launch. SKCG also provides hedge fund managers with “benchmark reports” showing the coverage and services that other hedge funds are buying.
The program points more established hedge funds toward key person life insurance as an important component in risk management, alongside business succession planning and sophisticated pension and non-qualified deferred compensation programs.
“We created this program to give hedge fund managers a clear understanding of their options every step of the way,” said David Parker, President of SKCG’s Employee Benefits Division, in the announcement. “When hedge fund managers launch their funds, they face abundant responsibilities and requirements. Our ‘Start-Up Kit’ is designed to take their risk management and insurance concerns off the table so they can concentrate on raising assets and managing their funds.”