Law specialisms : Hedge funds

Beth Cantor trained at Simmons & Simmons LLP and qualified into the hedge funds team in the financial services department. She currently works for a number of top European hedge fund managers.

What does the work involve?

The work ranges from advising on the structuring and establishment of hedge funds (investment companies which are usually, although not exclusively, incorporated in the Cayman Islands), to providing ongoing advice during the life of the fund.

Ongoing advice covers issues such as creating new share classes, changing the fund's constitutional documents and appointing new service providers, such as banks who provide lending, clearing and custodial services, and administrators who deal with investors and the valuation of funds. In the wake of regulatory proposals in the European Union we have seen some of our hedge fund clients launching regulated funds which follow similar strategies but within the parameters of the regulations. Our wider fund's team advises on a range of areas of law such as corporate, regulatory (particularly important in the current environment), financial markets and, perhaps most importantly for hedge funds, tax.

Hedge fund lawyers need to combine a good understanding of regulatory, corporate and tax issues with a good knowledge of financial markets and products, and above all be in tune with their clients' commercial concerns, especially in the current economic climate.

As we have a large client base and our clients are demanding, the hedge fund team does work hard. However, the workload tends to be more consistent, as opposed to the all-nighters/quiet days often seen in traditional corporate departments. Hedge fund projects/transactions tend to be of a smaller scale than the 'average' corporate deal which means that although you tend to work on numerous matters at the same time, you are often able to structure your workload so as to enjoy a healthy work/life balance.

Who are the clients?

As with all areas of law, having good relationships with clients is paramount, whether those clients are large investment/asset management institutions or smaller start-ups and whether the relationships are long standing or new. It is vital to understand clients' businesses and their commercial drivers so as to communicate relevant advice to them in a clear, concise and helpful way. It is important to provide practical and workable solutions to the problems and challenges they face and to ensure that deadlines are met and transactions are managed efficiently and effectively.

What do trainees do?

Trainees become heavily involved from an early stage and are often entrusted with a high level of responsibility. Trainees should expect a lot of contact with clients and clients' other service providers, although sadly very few trips to the Cayman Islands. Trainees may be required to draft and review ancillary documents, project manage clients and attend conference calls and meetings with clients.

What skills do I need?

Hedge funds work is predominantly transactional work and is therefore ideal for energetic people who enjoy the adrenaline of meeting deadlines. People who can think on their feet and devise creative solutions will be ideally suited. A 'can do' attitude, an ability to get on with clients and to react to their demands and, of course, a good eye for detail will stand you in good stead.