How To Go From $5M PE Fund to $25M?
Hi guys,
I recently joined a solo entrepreneur that recently exited his prior company and netted a nice payday. We recently started a small PE fund with about $5M in capital, in addition to bootstrapping a few different start ups together. Our plan is to have these start ups grow over the next couple years, and use the income and potential sale of these companies to provide further capital to our PE fund.
Now, how would you guys recommend raising capital for something like this? Neither of us necessarily have any institutional connections as we're more entreprenurial versus investors. Would LP's be willing to investing in something like this, given we have pooled $5M of our own capital into the fund?
Look into the independent sponsor model
Maybe look into a sbic fund
Given it is really small dollars, you’re more practically looking at family and friends
Looks to me co-invest would work best, probably from family offices rather than inst LPs. This is because there is no organisation per se, so no LPs would commit in the current environment, but FOs should be fine. If you do well on your first deals, it should be well doable imo
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