Steps, timeline and costs for formation of Private Equity Fund
Hi All,
I am explaining to my senior management the steps and timeline involved in establishment of a private equity firm. I have enlisted the below steps and timelines. If you can please provide your input and also if possible give an idea of initial cost (i.e. only for formation costs / consultants etc and not including staff/operations). Thanks!
- Concept Paper and Approval – 1 month
- Detailed Business Plan – 1 month
- External Consultants hiring including independent accountants, attorneys and industry consultants – 1 month
- Establishing a fund management company and hiring of key team/office/operations – 2 months
- Preparation of private placement memorandum and other operating agreements – 1 month
- Establishing the investment vehicle – 1 month
- Finalize the fee structure and other documentation – 1 month
- Fundraising (marketing) – 6 months
- Fundraising (term negotiation) – 3 months
- Fundraising (first close) – 3 months
Responses pleaseee
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