Alternative Investment Fund Directors – Experience Is Key

Introduction

The global financial crisis has reinforced the importance of ensuring that directors have sufficient knowledge and experience to discharge their duties effectively.

The purpose of this article is not to attempt to discuss in detail the duties of directors, but rather to highlight some of the issues that directors may face in times of financial crisis. In order to demonstrate the importance of ensuring that directors are appropriately qualified and experienced, this article is written with alternative investment funds in mind, where the risks to directors are perhaps more acute given the complexity of some of the investment strategies employed and the frequent use of leverage to enhance returns.