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Blog - Applied Fund Solutions



Speaking Engagement – New Strategies and Market Opportunities – Hedge Fund Emerging Manager Forum- New York

By Daniel Nikci

The emergence of new & unconventional sub strategies:
– Cryptocurrencies
– Other blockchain based technologies
– Cannabis
– Credit & direct lending

New managers raising funds for these strategies

Investor appetite for new strategies

Daniel Nikci, Founder & Principal, Applied Fund Solutions
Geoffrey Burger, CEO & Founder, Culture Capital
Jeff Hass, COO, Old Hill Partners
Sean Keegan, CEO, Digital Asset Strategies



Tax Reform Impact on Investment Managers’ Carried Interest

By Michael Galvin

Topic that has garnered a lot of attention for fund managers of late has been the impact of the new tax law on carried interest. Under the newly enacted law, IRC Section 1061 of the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017, a general partner’s allocation of income that previously retained the long-term capital gains characteristics of the underlying investments in the partnership will now be treated as short-term capital gain. This short-term capital gain will be taxed as ordinary income, at a maximum rate of 37%.

Under the new law, if a partnership sells an asset that has been held for over a year, will be treated as long-term capital gains for the limited partners.  However, the allocation to the general partner will now be subject to short-term capital gains treatment, unless the asset was held for 3 years or greater. The new tax rules apply to those operating a trade or business that raises and returns capital relating to investments in securities, commodities, derivatives, and real estate.

The enactment of IRC Section 1061 under the Tax Cut and Jobs Act has forced investment managers to consider what type of fund structure and investment holding period allows for maximum return. As fund managers assess future decisions to deploy capital, the impact of current changes to carried interest must be included in the decision-making process.


Importance of Shared Values

By Daniel Nikci

When I think of a favorite brand, I think of quality, craftsmanship and a human connection the brand makes with people. It’s my connection to the builder, the planter, the designer that have put a little bit of themselves into their brand. It’s a commitment to their values found in the products and services I enjoy. Brands can relate to your archetypes and personalities, your desire to feel elegant, sophisticated and smart. They can relate to your basic needs of feeling safe, independent or loved.

Brands like Harley Davidson make you hit the road and ride, feel free and independent. Loving the NY Yankees should make you want to get out there and play ball, should inspire you to play the best ball you can!

Warren Buffet was quoted as saying “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

So what does a brand really mean? What does it represent when today’s darling could be tomorrow’s dud? We’ve seen that with the world’s best brands, people and even empires.

So I like the best brands and I like the unique brands which choose to do things differently. Above all, I like the brands that connect to my values, day in and day out, inside and outside the company.

At Applied Fund Solutions we have a passion for our clients and our contribution to their success.  We share in our client’s ambitions as we empower them and offer transformative solutions.  We take a holistic approach to the operating model with a commitment to constantly evolve with our clients.  This value alignment is fundamental in pursuing your vision.

Do your business partners share your values?