Private equity investment is the lifeblood of economies around the world. Starting your own private equity fund can be a daunting task, but with dedication, knowledge and some luck, you will be able to reach a very lucrative deal with your clients.
It is necessary
- - Investment strategy;
- - good marketing;
- - investors.
Instructions
Step 1
Determine what kind of investment you will accept, what market area the company will occupy. Private equity funds most often work with activities such as financial transactions with stocks and bonds. Many funds calculate commodity futures, build various currency and options strategies.
Step 2
Open your foundation. This is fairly straightforward if you plan to remain the owner or operator. It is important to decide in which area your clients will invest, and how to manage the capital correctly and in accordance with the chosen direction. If you are immediately going to carry out larger transactions, as well as hire several employees, then consider the possibility of organizing the fund on a departmental line. This will open up departments that will start dealing with bonds, currencies and commodities, as well as offices for investing and administrative matters. A senior officer should be put in charge of each of them.
Step 3
Think about the type of legal entity that suits you. Most mutual funds are organized in the form of a mini-corporation or limited liability companies. Make an appointment with your personal accountant and discuss the most appropriate tax status. For example, when choosing the form of LLC, you can rely only on the tax corresponding to the given enterprise.
Step 4
Register with the authorities in charge of the law. Most mutual funds require securities and exchange clearance, but if your fund specializes in other types of transactions and products, then it is possible that you will be invited for an interview with the National Futures Association and the Commodity Futures Trading Commission.
Step 5
Start attracting investors. Both individuals and institutions are capable of becoming them. Comply with the rules regarding the work with private data, analyze the risks and benefits of your investment fund.
