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
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