I'm not accredited - can I start a fund with my friends where we are all GPs?
I'm just over a year out of college and not accredited. I don't want to wait for income or net worth thresholds to be met. Would it be feasible for myself and 4 friends to each chip in $50K and start our own PE fund, where we are are all GPs and have no external LPs? Then, our fund could invest into other funds as an LP.
In our specific case, there are a handful of opportunities we have already picked out and would like to pursue, the only issue is that we can't invest as individual LPs due to not being accredited.
Would this structure be:
a) legal
b) cost effective, and
c) a relatively small time commitment after the entity was formed?
Not to rain on your parade, but minimum check size is going to be in the millions (probably tens of millions) to buy into other firms. You’re going to need a LOT more money, and even if you had $20M, it’s unlikely an established PE firm would take on your cash
lol no, get a job and some skills this is too far beyond your paygrade to even be thinking about. Best you can hope for is work at a fund that lets you co-invest.
Lol this is one of the funniest questions I’ve seen in a while. Such an innocent one but so far off from reality. If you really want to do something, maybe pool your money together and invest in some real estate although I’d even caution against that given the liquidity risk
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