More and more individuals are asking about setting up funds as small as $250,000 and up to $50,000,000. Starting a small fund can be accomplished with some effort and having an affinity group willing to participate. To establish a larger fund is a significant challenge and outside investors will require an experienced manager with a successful track record. Most with the needed track records and experience are already managing one or more funds.
Smaller funds can be operated and gain valuable experience deploying their capital in businesses in which their management has experience. It is like a new born crawling before you walk and walking before you run gaining knowledge and experience as you go.
Being the owner and manager of your own fund carries a level of prestige in your local business community and will facilitate and attract more opportunities.
There are many different fund types, but the major categories are;
Leveraged Buyouts (LBO)
Special Situations aka Distressed or Turnaround
Fund of Funds
Starting and building your own fund can be rewarding and put you on a career path with unlimited potential. Organizing a fund can be daunting and expensive but it does not have to be.