Starting a PE fund

In a totally fabricated world...

Say you did 2 years IB, 4 years in an UMM PE firm. 

How easy would it be to raise capital. Say even 5-10mil?

And how would you do it? - Would you speak to small family offices for tiny tickets?

Would sourcing a deal, pre-arranging debt and then asking for co-invests and other small PE firms to join be your best bet?

Or would you go about it another way?

4 Comments
 

I’m a Senior Associate at a mid cap fund that’s had pretty good returns, I’ve chatted to a few family offices just out of curiosity, asking questions like “where would I need to be in a few years for you to back me” and the consensus I got was that small spin outs are backed because of their specialisation. You need to be the expert on something very niche, the example I was given was Polish building materials. If you can do that then as a VP my understanding is that you can get a decent amount of cash with the understanding that if you do well they will give you more. This will be a very long route to building your own shop but if you’re the kind of person who hates working for other people it’s not a bad track.

The alternative route of spinning out at the MD level and doing a huge raise is probably more lucrative in the long run but is obviously a bit of a grind.

 

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