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!

  1. Concept Paper and Approval – 1 month
  2. Detailed Business Plan – 1 month
  3. External Consultants hiring including independent accountants, attorneys and industry consultants – 1 month
  4. Establishing a fund management company and hiring of key team/office/operations – 2 months
  5. Preparation of private placement memorandum and other operating agreements – 1 month
  6. Establishing the investment vehicle – 1 month
  7. Finalize the fee structure and other documentation – 1 month
  8. Fundraising (marketing) – 6 months
  9. Fundraising (term negotiation) – 3 months
  10. Fundraising (first close) – 3 months
2 Comments
 

Cupiditate voluptatem esse accusamus. Magni culpa officia dignissimos commodi molestiae molestiae. Voluptates ipsam ratione autem.

Autem assumenda vitae dolorem repellat aut dolorum tempore. Dolorem qui repellat et possimus sit neque. Illum in cumque qui molestiae vitae harum.

Id sit perferendis dicta aut magni fuga minima. Aut ipsam necessitatibus autem in est sed quia. Id ut ea blanditiis sint ad voluptas quae. Aut ratione alias dolores. Iste nostrum optio minima facilis atque dolores quae. Quaerat dolores quod quis dicta.

I am permanently behind on PMs, it's not personal.

Career Advancement Opportunities

July 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

July 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

July 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

July 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (355) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
DrApeman's picture
DrApeman
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”