ALSPs: A Flexible Solution for Fund Formation and Ongoing Compliance
Learn why fund managers are turning to alternative legal services providers like Agile Legal for support on fund formation and ongoing management efforts.
Launching and managing a private fund requires navigating complex regulatory filings, investor onboarding and ongoing compliance obligations. For fund managers, RIAs, private equity sponsors and fund administrators, these tasks can divert focus from raising and deploying capital.
To bridge this gap, fund managers are increasingly turning to alternative legal services providers (ALSPs). By combining specialized expertise, scalable resources and cost-efficient service models, ALSPs offer invaluable support on fund formation and ongoing compliance efforts of open-ended funds, so managers can focus on performance and investor relations.
Fund Formation: Building a Solid Foundation
The success of a private fund is highly dependent on how well it is structured at inception. Missteps in documentation or failing to meet compliance deadlines can lead to costly penalties and reputational harm. ALSPs provide critical support to ensure funds launch on schedule, with reduced risk and execute a documented compliance plan. They can provide:
Entity Structuring and Documentation
- Assemble and QC offering and governance document packages (e.g., LP/LLC agreements, subscription agreements, PPMs).
- Coordinate attorney review and sign-off.
SEC and Blue Sky Securities Filings
- Coordinate EDGAR Next registration and Form D filings.
- Manage state notice filings and fees.
- Track and support ongoing reporting obligations (Forms 1-K, 1-SA, 1-U and state notice renewals).
Q: When is a Form D due?
A: For issuers wishing to rely on the safe harbors under Regulation D, a Form D must be filed within 15 days of the date of first sale of securities.
Governance Support
- Prepare board/shareholder resolution packets.
- Organize director/officer consents and related corporate authorization documents.
Investor Onboarding
- Consult on and draft KYC/AML policies to identify bad actors and at-risk persons
- Streamline accredited-investor verification for Rule 506(c)
- AML/KYC screening workflows with custodians/admins. (Note: FinCEN’s RIA AML rule is delayed to 2028. Read more here.)
Ongoing Management: Staying Compliant
When forming a fund, few fund managers consider the ongoing compliance costs associated with their open-ended funds. These costs can add up over the life of the fund. Once operational, a fund’s administrative and regulatory obligations grow significantly. From maintaining good standing to meeting reporting requirements, ALSPs provide ongoing assistance to keep fund operations running smoothly. Although law firms provide valuable guidance at fund formation, they are not necessarily equipped to efficiently manage the more routine, ongoing compliance functions of an open-ended fund.
Regulatory compliance with Blue Sky laws and the SEC
- Monitor and maintain EDGAR codes.
- Provide renewal reminders and notices.
- Prepare and file Form D Amendment submissions.
- Calendar and prepare materials for Form ADV updates.
- Form PF event/periodic reports (as applicable).
- Coordinate with fund admin on audits and investor statements.
- Support NFA CPO/CTA reporting where relevant.
- Track critical fund compliance dates and filings requirements for each state/jurisdiction.
- Monthly or quarterly review of sales reports.
- Ongoing Blue Sky research for exemptions and notice filing requirements.
- Track and budget ongoing state notice filing fees.
- Provide detailed Blue Sky charts for use in regulatory inquiries.
Entity Maintenance
- Secure good standing certificates and charter amendments.
- Maintain accurate entity records, governance documents, and corporate compliance across jurisdictions.
Transaction Support
- Prepare ancillary agreement packets.
- Assist with financing statements and support portfolio company transactions.
Investor KYC/AML
- KYC/AML checks for new investors
- Ongoing KYC/AML monitoring of existing investors
- Periodic full searches of investors in accordance with risk indicators and policies
Reporting
- Coordinate with fund administrators to streamline annual reporting requirements.
Attempting to manage these requirements entirely in-house can quickly drain internal resources and distract teams from strategic priorities. At the same time, overlooking obligations or missing deadlines exposes funds to regulatory scrutiny, financial penalties and reputational damage. As more vehicles are launched and reporting obligations multiply, the complexity of tracking every filing, notice and renewal, only increases, which makes a structured compliance partner essential.
How Agile Legal Helps
Agile Legal’s Fund Services team helps fund managers, fund administrators, RIAs, sponsors and issuers navigate fund regulations and streamline compliance, building a solid foundation for long-term success.
We guide you through every stage of the process, from entity formation and offering documents to regulatory compliance and ongoing investor oversight. The streamlined compliance programs that we develop and execute relieve the personal burden these obligations place on legal and compliance professionals. We alleviate the stress of unquantified risk, provide peace of mind through structured compliance management and give your team the freedom to focus on higher-value legal strategy and investor relations. By taking on the administrative load, we ensure compliance is a managed process, not an ongoing source of anxiety.
Delivering Protection & Performance
Fund formation and compliance demand accuracy, speed and project management. For many managers and sponsors, the administrative workload can overwhelm strategic priorities. ALSPs provide a scalable solution, offering specialized expertise in documentation, compliance and investor onboarding, while reducing costs and improving efficiency.
Today, operational agility is not optional; it’s a strategic differentiator. By partnering with Agile Legal, fund managers and administrators can protect their funds, safeguard investor confidence and focus on delivering investment performance.
Need support with fund formation or ongoing management? Contact us to learn how Agile Legal can help you secure the success of your strategic investments.
