PE Fund or Hedge Fund Harder To Start?
Assuming that you have overcome the hardest obstacle, which is attracting initial investors, and you have raised a small amount of capital, like $25 MM or so, which would you say is harder to start, a PE fund or a hedge fund? What would starting your own fund entail? Also, how long would it take for the fund to reach ~300MM in size ( I know this seems like a very abstract question which can vary greatly with performance, how many more investors will give you money, etc.- I just want a general outline of what is possible to happen).
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On your main question
On your main question, a hedge fund would be easier to start and manage. Technically, you could run it from your home. A hedge fund can freely invest in whichever product you choose, but private equity requires a much deeper understanding of the inner workings of companies. Also, in PE, once invested, it is very difficult to gain access to your money as it
is locked-up in long-term investments which can last for many years. A hedge fund can be as iliquid or illiquid as you want.