Operational due diligence, risk assessment, fund structuring and strategic advisory for hedge fund managers
SOLID ADVISE AG supports hedge fund managers with operational due diligence, risk frameworks, and strategic advisory. We work with funds spanning long/short equity, macro, multi-strategy, and alternative credit. Our team has advised on 20+ fund launches and restructurings over the past decade.
Historically, equity long/short strategies in our network have delivered net returns of 10% to 16% annually, with volatility targeting 8% to 12%. Macro and multi-strategy mandates typically aim for 12% to 18% net, depending on leverage and asset mix. We emphasise governance, compliance, and investor reporting aligned with institutional standards.
Our hedge fund advisory spans the following sectors with typical return and risk parameters:
AI and quant strategies typically target 15% to 22% net returns with lower correlation to traditional equity markets. Our advisory focuses on data infrastructure, model risk, and alpha decay management. Systematic strategies in our network have achieved average Sharpe ratios of 1.2 to 1.8.
Fintech-focused hedge funds in our network typically target 12% to 20% net returns. We advise on lending platforms, payments, and market structure. Portfolio companies have demonstrated 40%+ revenue CAGR in growth-stage allocations.
Digital asset and Web3 strategies are deployed with strict risk limits. We advise on custody, valuation, and regulatory compliance. Target returns vary widely; we prioritise position sizing, drawdown control, and transparency. Typical allocation: 3% to 8% of AUM for dedicated crypto strategies.
Commodity and resource-focused strategies typically target 8% to 14% net returns. We advise on energy, metals, and agriculture. Historically, diversified commodity funds have delivered inflation-hedged returns of 6% to 11% over full cycles.
Long/short equity strategies in developed and emerging markets typically aim for 10% to 16% net returns. Our advisory covers sector rotation, factor exposure, and ESG integration. Average gross exposure in our advised funds: 80% to 120%.
Private credit and distressed strategies typically yield 8% to 12% net with senior secured structures. We advise on structuring, covenant packages, and recovery analysis. Default rates in our advised portfolios have historically remained below 2%.
We provide independent operational due diligence, risk framework design, and strategic guidance. Our 25+ external partners include prime brokers, administrators, and legal experts across Europe, Asia, and the United States. We support funds ranging from €50M to €2B+ in AUM.