Distribution agreements – some key points

While most fund managers will also act as the distributor of the funds they manage, some will appoint third parties to help as well. The starting point for entering into any such arrangement will be full due diligence on the third party. Once satisfied that the legal and personal relationship will work, the next step is to negotiate a distribution agreement. In this note we look at the key questions to ask before beginning negotiations. These questions will help guide your thinking and make the negotiation process more streamlined.