Private investment is the lifeblood of the global economy. Getting started with private equity management will be a daunting task, but with dedication, knowledge and a little bit of luck, you and your clients will be satisfied with the partnership.
It is necessary
- - Investment strategy;
- - good marketing;
- - investors.
Instructions
Step 1
Determine what kind of investments you will accept, in what market niche your company will be involved. The most typical activities of private equity firms are stocks and bonds, but many of them also interact with commodity futures, foreign exchange and various options strategies.
Step 2
Organize your company. If you are the owner or operator, then this is relatively easy. You must decide which areas to invest in and how to properly allocate capital in accordance with the chosen areas. If you are going to start with larger operations and also hire several employees, consider organizing the company along a departmental line. Open bond, commodity, currency, and investor and other administrative departments, each of which should be managed by a senior officer.
Step 3
Select the type of legal entity. Most investment companies are organized in the form of a mini-corporation, a limited liability company. Also check with your accountant about which tax status is right for you. For example, if you have an LLC form, then you can either only be subject to the corresponding tax.
Step 4
Register with the appropriate regulatory authorities. Most private equity firms are required to register with the Securities and Exchange Commission, but if your company specializes in unique financial products and transactions, it is possible that you will also need to register with the Commodity Futures Trading Commission and the National Securities Futures Association.
Step 5
Attract investors. They can be both individuals and institutions. Keep track of your privacy regulations and analyze the risks and rewards of your investment strategy.
