No - registration required
Standard RIA restrictions
Yes
No
Disclaimer
Summary
Private fund adviser rules in AK
Perhaps surprisingly, there are hedge fund managers in Alaska. But perhaps unsurprisingly, there are very few, and Alaska isn’t exactly the hot spot of private funds or advisers. There is no exemption framework in Alaska, and a private fund adviser based there must become a state registered investment adviser.
Alaska specific adviser rules
Alaska does not have an exemption framework; therefore, fund managers based in Alaska must be registered investment advisers (an "RIA") in order to operate.
Investor restrictions
RIAs are restricted to taking on accredited investors that are also "qualified clients" ($2.2m+ net worth) in order to charge performance based compensation.
Reporting requirements
State notice filing by way of Form ADV is required.
Audit requirements
Funds managed by AK based advisers must receive an annual audit, and the results of those such audits must be supplied to investors upon completion.
Detailed Summary
Alaska has not implemented any exemption framework for private fund advisers. This makes Alaska a relatively more challenging state to be an emerging manager in, in the sense that the minimum operating cost and administrative burden of being an emerging manager is higher than that of states that do have an exemption framework. There are approximately 5-10 states with a similar framework (or lack thereof).
Because advisers based in Alaska must be registered investment advisers, advisers must take into account the licensure requirements (which may entail, for example, the holding of the FINRA Series 65) and the cost of RIA registration (typically through a law firm and costing between $15,000 and $30,000 on the lower end), as well as ongoing RIA compliance costs each year.
Restrictions for state registered RIAs with respect to private funds generally entail being restricted to qualified clients (if performance related compensation is desired), having each fund undergo an annual audit, and possibly other, state-specific RIA requirements around reporting and custody. This article does not contemplate state-specific RIA requirements, and any such advisers should seek the guidance of counsel.
Repool can still be utilized for fund launch by RIAs, but Repool does not generally assist with RIA registration or RIA-specific ongoing complaince, and additional such services alongside Repool’s services will be required.
