The report, citing fund executives, also noted that hedge funds have a growing need for auditing, consulting and tax advice, as regulators increasingly scrutinize the industry. And, while some recent figures have pointed to a difficult time for the world’s hedge fund industry, the sector is “thriving” with new inflows and a more varied range of products, Citigroup said in a recent report. Also of note, in July 2013 the SEC lifted an 80-year-old ban on general solicitation or general advertising for certain private securities offerings, meaning registered financial institutions can now legally market their investments.

“Joining KPMG positions us extremely well as the demand for emerging hedge fund managers and new launches at existing funds continues to expand,” said Howard Altman, chairman of Rothstein Kass.

KPMG’s alternative investments business includes over 6,000 partners and staff globally providing audit, tax and advisory services to hedge, private equity, real estate, infrastructure and fund-of-funds.

Rothstein Kass has around 1,000 principals and staff in eight offices across the US (the firm also has an office in Ireland and in the Cayman Islands), providing audit, tax, and advisory services to hedge fund, private equity, venture capital and other clients. The firm also has a considerable presence in the high net worth and family office spaces – Family Wealth Report understands that the Family Office Group will be spun off with 38 people.

“This agreement will significantly strengthen KPMG’s market position in the alternative investments space and enable us to provide the highest level of service to hedge funds of every size and at every stage of growth, from emerging managers to the most seasoned funds,” said Scott Ozanus, deputy chairman and COO of KPMG. “It demonstrates that KPMG intends to continue to invest in enhancing capabilities to service this fast-growing market and our clients.”