Most hedge funds are run as a pseudo ponzi, a blind eye was turned to it the past years and decades because the world was awash with money, today that no longer exists and is not tolerated by Sovereign, we've turned down hedge fund creation requests when the world had money, it's cost me $100,000s and more. Hedge funds cannot keep up with the returns and with their general approach are closing early leaving the more 'aggressive' ones to absorb/pass on the problem (this is the basis for 5pages of comments), if you do not run an F&F for years, or do not have a track record of 3/5/10 years with your methodology, or do not use an existing methodology proven over the years, everything else falls in to the first statement "Most hedge funds ...", it's only a matter of interpretation as to what level which today Sovereign care less and less about. Good diligence is seeing that interpretation and whether people actually want to put in the hard work, or as most do use what they think works today (it doesn't) based on what the markets and investors 'tolerated' in the past (their desperation knows no bounds except one), hence we never went down this road so makes everything both more complex and also simpler, we took the exception as the rule, do it correctly.
For an experienced structurer price varies vastly. It mostly depends on said fund size and generally desired tax exposure threshold. Your threshold also depends on your investment strategy as well.