Help Starting a Fund

S

showyouwang

So I'm starting a small fund operation with a partner and was wondering if I could learn the experience and insight of any fund managers who have gone down the route of starting up their own fund and doing their own administration & accounting.

I understand there is a thread started by ProfitTakgFool but it's outdated and the 'moneymanagerservices.com' site seems to be completely abandoned. Outside of that site there is a complete lack of aggregated information for fund managers and the stuff out there is very obscure and difficult to find. It would be ideal if someone could tell me what resources they are using in this regard.

We'll be getting a consultation from accountants/lawyers, but if I can get a better and more thorough understanding first-hand that would be the best solution.

Thanks,
Show
 
You need to have a lot of operating capital and a good relationship with a PB. You need compliance, council, tax, audit, back office (accounting/administration), etc.

I sent you a PM with some more detail. What type of fund are you looking to start and how far out are you from receiving funds from investors?
 
Quote from WinstonTJ:

You need to have a lot of operating capital and a good relationship with a PB. You need compliance, council, tax, audit, back office (accounting/administration), etc.

I sent you a PM with some more detail. What type of fund are you looking to start and how far out are you from receiving funds from investors?
More...

"Lot of operating capital" = what does this mean in absolute terms ???
 
Quote from showyouwang:

So I'm starting a small fund operation with a partner and was wondering if I could learn the experience and insight of any fund managers who have gone down the route of starting up their own fund and doing their own administration & accounting.

I understand there is a thread started by ProfitTakgFool but it's outdated and the 'moneymanagerservices.com' site seems to be completely abandoned. Outside of that site there is a complete lack of aggregated information for fund managers and the stuff out there is very obscure and difficult to find. It would be ideal if someone could tell me what resources they are using in this regard.

We'll be getting a consultation from accountants/lawyers, but if I can get a better and more thorough understanding first-hand that would be the best solution.

Thanks,
Show
More...

You should visit

http://www.opalesque.com/

and for fund admnistration

http://www.carbon360.com/FAFactBook/home.do

Hope, it helps. Good luck.
 
Quote from ASusilovic:

"Lot of operating capital" = what does this mean in absolute terms ???
More...

Depends, iin my opinion if you want to start a hedge fund you need to have $2mm set aside to blow on operating budget. If you want to start a mutual fund or ETF - maybe more, maybe less.

I sent OP a private message asking questions if he doesn't want to post in public. A "Fund" is a very non-specific thing and to be honest the grass is always greener. An LLC "asset pool" type structure is always a better way to go IMHO, unless you are the type that needs to have investors and a hedge fund to feel satisfied.
 
Quote from WinstonTJ:

Depends, iin my opinion if you want to start a hedge fund you need to have $2mm set aside to blow on operating budget.
More...

This is high by 1- 2 orders of magnitude. If you know what you're doing -- or know people who do -- you can start a "fund" on a shoestring. If/when the fund develops a trackrecord and is ready for public consumption, then you can hire a name-brand auditor, admin, lawyer & etc. Till that time, there's no point in spending the money.
 
Quote from Rodney King:

This is high by 1- 2 orders of magnitude. If you know what you're doing -- or know people who do -- you can start a "fund" on a shoestring. If/when the fund develops a trackrecord and is ready for public consumption, then you can hire a name-brand auditor, admin, lawyer & etc. Till that time, there's no point in spending the money.
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Thats why I said that a "Fund" is a VERY general statement. In my opinion, until you are a Registered Fund (accepting investors) you are nothing more than an asset pool and you are right - $1k can get you into an LLC/Asset Pool no problems... but that isn't a Fund.
 
Quote from WinstonTJ:

$1k can get you into an LLC/Asset Pool no problems... but that isn't a Fund.
More...

For a cost in the tens of thousands, you can set up an offshore fund -- but not, of course, with name-brand vendors.
 
Quote from WinstonTJ:

Depends, iin my opinion if you want to start a hedge fund you need to have $2mm set aside to blow on operating budget. If you want to start a mutual fund or ETF - maybe more, maybe less.

I sent OP a private message asking questions if he doesn't want to post in public. A "Fund" is a very non-specific thing and to be honest the grass is always greener. An LLC "asset pool" type structure is always a better way to go IMHO, unless you are the type that needs to have investors and a hedge fund to feel satisfied.
More...

USD 2 million is way exagerated. Admittedly, it depends on what sort of "fund" we are talking about. The definition of your investment objective and investment strategy is the first decision you should make and will determine your cost structure.

Global Macro, Distressed Securities, Short Bias, Futures, L/S, Relative Value...what's it going to be ?

So, taking a look at :

https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login&loginflag=1&1270492048

or

http://www.hedgeindex.com/hedgeindex/de/default.aspx?cy=USD

or

www.barclayhedge.com

is worth it !

By the way : there are some cost-conscious solutions out there. Some providers are offering ready-made fund platforms through master fund structures.

If interested - PM.
 
Quote from Rodney King:

For a cost in the tens of thousands, you can set up an offshore fund -- but not, of course, with name-brand vendors.
More...

And the purpose of this would be what? I can set up an offshore entity too - but I can't solicit US investors without setting it up properly.

Have you done this? Setup alone is $50k and compliance will run you another $50k.

OP has not stated what types of things he invests in, what his goals are, how far along in the process he is, etc. etc.
 
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