These FAQs answer the questions clients ask most often across fund formation, private investment, regulatory compliance, tax, corporate, real estate, and digital asset law. Each entry gives a clear, plain-language explanation of a single topic, with links to the related Sadis capabilities if you want to go further. Use them as a starting point, then reach out to our team for guidance specific to your situation.
A hedge fund is a private investment vehicle in which pooled investor assets are managed by an investment adviser according to a stated strategy. Unlike mutual funds, hedge funds are not required to register with the SEC as investment companies when they meet certain investor-qualification exemptions. Read more
A family office is a private entity established to manage the financial and non-financial affairs of a wealthy family. Unlike a typical wealth-management account, a family office coordinates investments, legal matters, estate and succession planning and sometimes lifestyle services such as bill payment and travel arrangements. Read more
ERISA is a federal law that regulates employer-sponsored pension and welfare plans. It establishes minimum standards for plan participation, vesting, funding and fiduciary responsibility. Read more
A venture capital fund is a private investment fund that raises capital from accredited investors to invest in early-stage, emerging, or high-growth companies. Venture capital funds are typically organized as limited partnerships, with a general partner responsible for managing the fund and making investment decisions, and limited partners contributing capital. Read more
Digital assets are electronic records that represent ownership or rights to value. They include: Cryptocurrencies such as bitcoin and ether, which function as mediums of exchange and stores of value; Read more
Managing digital assets involves: Inventory and documentation. Maintain a comprehensive list of digital assets, including wallet addresses, account credentials, private keys and backup phrases. Read more
Digital currency is a medium of exchange that exists exclusively in electronic form. It may be decentralized (cryptocurrencies) or centrally issued (stablecoins or CBDCs). Read more
Regulatory compliance is the process of ensuring that a business or individual adheres to applicable laws, regulations and self-regulatory organization (SRO) rules. For investment advisers and broker-dealers, this includes complying with the Investment Advisers Act of 1940, the Securities Exchange Act, CFTC and FINRA rules, anti-money-laundering regulations, sanctions programs and tax laws. Read more
Corporate law is the body of law governing how corporations and other business entities are formed, operated and dissolved. It addresses issues such as incorporation, shareholder rights, directors’ duties, fiduciary responsibilities, capital structure, compliance with securities laws and the negotiation and documentation of business transactions. Read more
Tax law is the body of statutes and regulations that govern the assessment and payment of taxes. It includes the Internal Revenue Code, Treasury regulations, state tax codes and international treaties. Read more
Real estate law is the body of law regulating the ownership, use, transfer and financing of real property. It includes transactional work (purchase contracts, joint-venture agreements), land use and zoning, development and construction, financing and security interests, leasing and taxation. Read more
A private equity fund is a private investment vehicle that raises capital from institutional and accredited investors to acquire ownership interests in private companies or take public companies private. Read more
DPI, or distributions to paid-in capital, is a ratio that measures how much cash a private equity fund has actually returned to its limited partners relative to the capital those investors have contributed. Read more
Private equity secondaries are transactions in which an existing interest in a private equity fund is bought or sold, rather than capital being committed to a fund at its formation. Read more
Subscription and NAV finance are two related forms of fund finance that investment funds use to manage capital and liquidity. A subscription credit facility is a loan secured by the uncalled capital commitments of a fund’s limited partners. Read more
Rollover equity is the portion of sale proceeds that a seller reinvests into the buyer’s entity instead of receiving entirely in cash at closing. It is most common when a private equity buyer acquires a business and wants the existing owners or management to retain a stake in the company going forward. Read more
A continuation fund is a new investment vehicle that a fund sponsor forms to acquire one or more assets from a fund it already manages, allowing the sponsor to continue holding those assets beyond the original fund’s term. Read more
An open-end fund is an investment fund that continuously accepts new investment and allows investors to redeem their interests on a periodic basis, typically at net asset value. Read more
Direct lending is a form of private credit in which non-bank lenders, typically private credit or private debt funds, make loans directly to companies rather than through the public bond markets or a syndicate of banks. Read more
A life settlement fund is a pooled investment vehicle that acquires existing life insurance policies as investments. A life settlement itself is a transaction in which a policyholder sells an in-force life insurance policy to a third party for more than its cash surrender value but less than its eventual death benefit. Read more