Private investment is the lifeblood of the global economy. Starting your own private investment management firm will be a daunting task, but with dedication, knowledge and a little luck, you and your clients will be able to enter into a very profitable partnership.
It is necessary
- - Investment strategy;
- - investors;
- - good marketing.
Instructions
Step 1
Determine what kind of investment you are going to accept, in what market area the company will be involved. Private equity firms operate in activities such as bond and stock transactions. Many of them accept commodity futures, currency and various options strategies.
Step 2
Create your firm. It's pretty simple if you are the owner or operator. It is important to decide in which areas your clients will invest, and how to properly manage capital according to the chosen areas. If you are planning to embark on larger operations and also hire a staff of several employees, consider setting up the firm on a departmental line. Open departments that handle bonds, commodities, currencies, and departments for administration and investor affairs, with a senior staff member at the head of each.
Step 3
Think about the right type of legal entity. Most investment firms are organized as mini-corporations or limited liability companies. Check with your personal accountant on the most appropriate tax status. For example, if you chose the LLC form, then you will be subject to the corresponding tax.
Step 4
Register with the governing bodies. Most investment funds are cleared through the exchanges and securities, but if your firm specializes in any unique transactions and products, it is possible that you will also need to register with the National Futures Association and the Commodity Futures Trading Commission.
Step 5
Attract investors. Both institutions and individuals are capable of becoming. Comply with privacy regulations and analyze the benefits and risks of your investment company.
