Starting a HF in college with multiple Accredited Investment?
I have found a business partner willing to be a general partner. This person has a proven track record raising accredited investment in real estate and believes he can promote me and the fund. Our target is raising $3 million accredited investment by July 2018. My role will be HFM running the fixed income and derivatives trading desk. This is a low return, low risk focused investment company meant to hedge portfolio volatility for clients. Would this help or impair my ability to work in IB?
On my personal brokerage account I do.
How would this impair your ability..?
It is unclear to me if this will be viewed as I am to independent to work with a large IB. Generally most of the people I have talked to that work with banks tell me to think outside the box, but not too far outside the box as it may threaten those above me and impair my ability to create a career.
(b) There is also a tangible risk of you blowing up and having some sort of regulatory baggage due to that. Though, in your particular case, I am not sure what exactly happens in cases of F&F money. There are other regulatory/legal poo-poos that might come out of running money, so be very careful.
As a side note, I can't see why anyone sane would invest a penny with a college kid. There is an expectation that a manager would have skin (more like foreskin) in the game. Most investors want managers to have at least 50% of their LNW invested in the fund and they want to make sure that at the early stages GPs are at least 50% of the AUM. Not trying to be harsh, just pointing out the realities of the world.
Yes these are realities of the game that I have to contend with. I personally hate using the terms that you pointed out, on here I used them as a more efficient communication terms. With people that understand IRL I use investment adviser / manager. But literally never talk about what it is I am doing.
As for skin in the game, I am putting in most of my retained gains plus base account ($40k+) making just over 50% LNW. Risk management is my true focus since I create accounting internal insurance. 20% draw down is the critical point were I suspend operations. Everyone and their dog claims to have risk management pre-defined, so I get this means absolutely nothing.
Currently the main things working in my advantage is my personal brokerage accounts consistent discipline and solid performance. From my understanding this is what firms tend to look for.
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