Path to starting a small LMM firm (fund of $200-$300mm)

Curious when the exit ramp of UMM/MF PE is to when you can start a fund. I have a strong thesis for somewhere in the LMM that is under-saturated with investment capital. Obviously, I am still a number of years away. But I would like to start reading about doing this.

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Comments (3)

May 5, 2021 - 6:29am

Depends on who else you are teaming up with. 

If you are the lead person and want to raise institutional capital (e.g. SWF/Pension) then you would need to show significant experience with a good track record (10 years+). However, you may be able to raise from family offices etc with less years of experience but think a strong track record will still be required. 

If there is enough gray haired individuals as part of your team then do it now. The sooner you start your own fund the better as it can take 10-15 years before you really start cashing in the big carry checks, assuming enough deals work out.

  • Prospect in AM - Other
May 5, 2021 - 7:40am

For a reference point, know of a guy who just started a LMM fund. He was a VP at a UMM and is teaming up as co-managing partner with a MD of a MM

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