PE minimum ticket
Hi monkeys!!
What would be the minimum ticket to invest as an LP in a PE fund? Does it vary ranging on the fund size?
Would 500k to 1 mln be enough for the minimum ticket?
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It entirely depends on the size of the fund you’d be trying to invest in. Unless you are a family member or close friend of a very senior partner at a reputable fund, they would essentially laugh you out the door. The term “access constrained” exists for this very reason. $500k to $1M would likely get you into a small first time fund trying to get off the ground that’s sub $100M, and even then it’s not like just anyone will take your money. Capital is a commodity and most GPs attempt to build their LP base thoughtfully. If no relationship is built and there isn’t any visibility to the possibility you could scale that commitment, you would be quickly dismissed. There are LPs out there writing $10M-$15M checks that struggle to even get in strong funds north of $500M. The size range you mentioned would be squarely in the HNW individual range, and you’d typically only have access to the smallest range of the market, unless someone did you a favor by allowing you to invest. I’d need more details to give you better numbers. Performance is also important. Almost anyone could get into a horribly performing fund that needs money to survive. But nobody’s goal is to light money on fire, so everyone wants access to the best performing managers.
Plenty of platforms / intermediaries out there that decrease minimum tickets. All private banks now offer private markets offering and there are even independent platforms like Moonfare that allow individuals to invest at 100k minimums.
Overall looking at LPAs of funds, minimum for any established manager seems to be €5m, GP has discretion on this of course
The fundraising market has significantly turned. I think that with $1m you’ll get access to plenty of quality managers in this environment
This is just inaccurate information, outside of an aggregated private bank platform. Even now, what quality established managers are you getting access to with a $1M commitment as an LP?
Any firm that is struggling to meet their target will GLADLY take your money.
I can confirm this, including some MF are now taking $1-5M checks. Pretty shocking.
Can you say which ones? I’m honestly just curious at this point. Have a parent that’s a partner at a large firm doing primaries (think RCP, Adams Street, GCM) and haven’t even ever heard of this in the MM/UMM, outside of family/friends/operating execs/current team members.
Having a hard time believing this
I confirm. Did a lot of fundraising and spoke with many LPs. EQT buyout was $5M minimum "only" few years back. There were others of same brand name but can't remember exactly.
Let's remember all of these platforms are setting up systems to take in retail money.
5bn fund, smallest LP tickets are 15-20m
If you worked as a placement agent on the fundraise you can get in for as little as $50k.
Minimum commitment amts are entirely at the discretion of the GP. Docs (including PPM and LPA) will typically cite $10m as minimum for institutional LPs but this can be as low as $50k or even less for friends/family. The only requirement is that you be an accredited investor, which means $200k of annual income, $1m total net worth, have series 7, etc. The actual ticket size doesn't matter as much and really depends on the GP.
I would definitely recommend Moonfare, they're flexible in terms of strategy and have some of the best GPs across asset sub-classes.
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