Questions about starting a private equity fund

An associate and I are discussing the possibility of starting a private equity fund.  We already have a registered LLC but are interested to learn about the minimum regulatory requirements that we would need to consider (and associated legal documents/steps).  In addition, we are trying to get a ballpark estimate of what the startup costs might be.

At this point, we are not looking to raise outside funds (which I know complicates matters).  We are planning to use our own resources to get the fund started.  Along those lines, do principals need to be qualified accredited investors?

Thank you for any guidance that you can provide.

Jed

What is your company specifically going to be doing?

Are you going to be raising capital and then investing it into different private firms? Or are you trying to raise funds yourself?

Start with the Security and Exchange Commission website:

http://www.sec.gov/

That's where all of your questions are going to be answered as your "equity fund" is likely to be regulated by the SEC.

Actually, there a lot of things to consider, for example:

1) You indicated that you will be raising funds internally.  This is never as clear cut as you stated in this post as I would presume "internally" doesnt necessarily mean the investment manager is the only one supplied money.  Nevertheless you will need to comply with SEC regulations and determine if the fund will be a 3(c)(1) or a 3(c)(7) fund.  You will also need to comply with all applicable US State securities regulations (Blue Sky).)

2) You will also have other tax issues that will likely arise with the jurisdiction of the formation of the LLC and how you expect to fund the carry.

I would recommend that you discuss all of the tax and regulatory implications with a qualified attorney prior to proceeding to ensure all "i"s are dotted and "t"s crossed.  Please also freel free to contact me off this board if you have additional questions at:

memento010@gmail.com