Starting a hedge fund in New Mexico

Hedge fund managers who reside in New Mexico will be deemed to be investment advisors under New Mexico’s securities act and, unfortunately, there is no exemption available from the registration provisions of the act.  This means that before a manager establishes a fund based in New Mexico, he will need to become registered as an investment advisor.

The people at the New Mexico Securities Division are fairly knowledgable and have been very helpful in the conversations we’ve had with them.  However, they have a horrible securities division webpage.  The webpage has very little useful information save for the links to the New Mexico laws (which are hard to navigate through).  I have posted below a list of the fees which are applicable to a hedge fund manager establishing a business in New Mexico. Continue reading →