Introduction: Practical Legal Excellence In Action
At Pellegrino, LLC, we know that our clients’ success stories are the single best reflection of our expertise, commitment, and client-focused approach to the law. As a boutique law firm dedicated solely to serving the investment management industry, we have provided practical business and legal advice to investment advisers, money managers and distributors, investment companies, independent trustees and directors, and service and platform providers. The representative case studies highlighted on this page demonstrate the range, depth and breadth of our experience, our ability to provide practical and actionable solutions to your business needs, and our commitment to client service.
Case Study 1: Launch of a Complex Multi-Asset Fund
“A leading investment adviser came to Pellegrino, LLC seeking to launch a multi-asset mutual fund with the objective to provide global diversification for institutional investors. This fund would require not only legal expertise but also an in-depth understanding of the practical applications of the rules in connection with structuring and marketing a complicated investment product.
Challenge: The client required comprehensive assistance from drafting the mutual fund registration statement to finalizing its advisory, sub-advisory and custody agreements. The complex structure of the fund included multiple classes of assets and a network of international sub-advisers necessitating regulatory, operational and compliance considerations.
Our Solution: In active collaboration with the client, Pellegrino, LLC tailored the legal architecture to meet SEC specifications and all other applicable regulatory responsibilities. We drafted and negotiated all significant agreements; managed Form ADV and fund registration filings; and provided strategic guidance around regulatory disclosures, marketing materials and communications. Through our hands-on, responsive approach we ensured that all aspects of the process were handled fluidly and competitively.
Result: The fund launched on time, cleared regulatory review without issue, and within a year had over $500 million in assets. The client complimented us on our ability to anticipate challenges, provide succinct business-oriented advice, and lead the project efficiently through completion.”
Case Study 2: Counseling a Board on a High-Stakes Advisory Contract Renewal
“An independent board of trustees of a mid-sized investment company retained Pellegrino, LLC as its special counsel to guide them through the annual renewal of their advisory and sub-advisory agreements. Because the board was subject to increased regulatory scrutiny, it wanted to ensure that they fulfilled their fiduciary obligations while conducting the process efficiently and expeditiously.
Need: The board sought concise legal analyses of complex fee arrangements, performance criteria and conflicts of interest scenarios. In addition, the board needed guidance on disclosure issues with an eye towards SEC and shareholder expectations and best practices.
Our Solution: Pellegrino, LLC undertook a review of all pertinent agreements and support materials. We drafted an in-depth memorandum summarizing key issues for consideration and we led board discussions on such issues and provided advice during negotiations. With our emphasis on practical solutions, we were quickly able to identify material issues and suggest solutions that were actionable.
Outcome: The board renewed all contracts under favorable terms and received positive feedback from shareholders and regulators. In addition, our services reduced legal fees by more than 25% when compared with the client’s previous experience using larger firms.”
Case Study 3: Simplifying Compliance and Regulatory Practices for an Expanding Advisory Firm
“A rapidly growing registered investment adviser client tasked Pellegrino, LLC to review and modify its existing compliance program in advance of an upcoming SEC exam. The firm’s internal personnel were overextended, and the firm retained us for expert assistance to improve regulatory compliance on a scalable basis to minimize business interruption.
Challenge: The client sought a comprehensive review of its Rule 206(4)-7 and Rule 38a-1 procedures and protocol, as well as comment on its advertising and marketing materials. The assignment involved creating regulatory controls that were granular enough to be effective but also practical and on a scale that would accommodate a growth-seeking business.
Our Solution: Pellegrino, LLC conducted a detailed gap analysis of compliance processes, updated policies and procedures, and developed staff training modules designed for the client’s particular business. Our team reviewed all advertising and marketing material with an eye toward changing SEC guidance. We maintained clear, actionable suggestion points and articulated clear risk escalation.
Result: The firm passed its SEC examination with zero findings, and received positive comments from examiners pertaining to the effectiveness of its compliance program. The client specifically complimented us on providing pragmatic recommendations and taking a lean approach that facilitated stronger internal controls and enhanced investor perception.”
Case Study 4: Negotiation of Tech Services Agreement for a Fund Platform
An investment company seeking an upgrade to its investor portal looking to modernize its application and underlying technology platforms sought our help in negotiating a complex technology services agreement with an emerging provider of fintech solutions. The project was part of the company’s larger initiative to transform its digital platform and revamp its investor service capabilities.
Challenge: The agreement covered not only the license and customization of the software, but also provisions for data protection, regulatory compliance, and services support. The client needed advice on both legal issues as well as in the technology and business areas to ensure that risks were properly identified and managed.
Our Solution: Drawing on our experience negotiating technology agreements and agreements for internet-delivered services more generally, we led negotiations on behalf of the client, with a focus on practical risk allocation, strong service level obligations, protections for privacy, and clear fee provisions. In addition, we liaised with the client’s internal IT department and compliance professionals to ensure the contract continued to align with operational goals while addressing changing regulatory requirements.
Result: The resulting agreement gave the client strong contractual rights, operational flexibility, and cost predictability. Ultimately the new investor portal went live without issue. The company reported results with improved investor engagement and satisfaction. Our work in quickly mapping technical issues to the legal protections required was critical to the project’s success.
Case Study 5: Blue Sky Compliance for Launching a Fund in Multiple States
A startup asset manager with plans for a nationwide rollout of a new mutual fund engaged Pellegrino, LLC to coordinate all Blue Sky law qualification and compliance issues. Because the client planned on offering the fund in all 50 states, it faced an extremely complex regulatory undertaking as a result of differing state laws and strict launch timelines.
Challenge: To achieve successful rollout and distribution of the fund, the client needed to efficiently coordinate registrations and renewals and develop ongoing compliance processes for a substantial number of states in a manner that minimized costs and administrative burdens.
Our Solution: Pellegrino, LLC created a detailed, state-by-state compliance schedule, coordinated all filings, and established an automated database to track registration progress and renewal deadlines. We provided concise, periodic reports of all filings and confirmations that each filing met state and federal disclosure laws.
Result: The fund was timely registered in every state of planned operation and was able to commence operations as anticipated. The client avoided significant delays and pitfalls, which the client credited to our process-driven approach and attention to detail.
Why Clients Choose Pellegrino, LLC
“Our case studies demonstrate our clear focus on delivering legal solutions that are not only technically sound, but also practical for our clients’ businesses. In choosing Pellegrino, LLC, clients know they will have:
- A boutique focus on the investment management business
- The benefit of both major law firm and real-world industry expertise
- A wide breadth of experience across a broad cross-section of investment product types and service agreement structures
- An emphasis on cost-effective, dependable, patiently responsive service
- Practical, value-added advice to help them achieve their business and regulatory objectives
We are proud to be trusted advisors, partnering with clients to anticipate risks and identify opportunities to help them fulfill their organization’s goals.”
Contact Pellegrino, LLC: Start Your Success Story
Whether you are developing a new investment product, dealing with regulatory issues, or seeking to strengthen your compliance program, Pellegrino, LLC stands ready to assist. We encourage potential clients to schedule a confidential consultation and discuss how Pellegrino can assist you with a number of investment management concerns.
Contact
4 East Cherry Street
Wenonah, N.J. 08090
Telephone: 856-292-8331
Fax: 856-504-0202
Review Mr. Michael Pellegrino’s CV for further details on his background and experience. We hope you will turn to Pellegrino for the next investment management success story. For more information, please visit our Contact Pellegrino, LLC page.