Hi, I am a 29 yo senior portfolio manager at a large asset management firm. I am really passionate about asset management and actually like to work hard, however i feel working for a big firm is not what i want to do for the rest of my life. I would really like to start my own firm…there is thousands of websites out there with some sort of advice, however they are very US focused and i am based in Europe. Does anyone know where i can find some information especially regarding: - registering the fund…best place, legal/tax issues - where/how to find seed capital besides family/friends Thanks so much in advance… Tom
Step 1: Get a good securities lawyer… You will need one to get setup and they can answer lots of this questions. Start looking for firms that can help you do this. Beware of billable hours.
3 parts caymen islands, 1 part hot shot attitude, 5 parts good contacts. You can do anything in the caymens, no lawyers needed!
maddane Wrote: ------------------------------------------------------- > 3 parts caymen islands, 1 part hot shot attitude, > 5 parts good contacts. > > You can do anything in the caymens, no lawyers > needed! Yeah, right. Caymans is pretty expensive. Anyway, you need to get a good accountant and a good lawyer. As Real says, you need to work hard on limiting how much they will charge you or you can be facing > $50K in set-up costs. Someone needs to sit down and explain a bunch of stuff to you before you get going and mistakes will cost you.
Ok, try cyprus, in europe like you, and pretty lax laws i think
RealWarriorsOnlyPlease Wrote: ------------------------------------------------------- > Step 1: Get a good securities lawyer… You will > need one to get setup and they can answer lots of > this questions. Start looking for firms that can > help you do this. Beware of billable hours. put a cap on legal fee, never leave billable hours exposed because from experience it will only come back to haunt u!
Buy one of those lawyer CD-roms.
Unless you’ve got a shedload of money that will follow you, it would be better to buy a fund off the shelf - ideally set up a JV with an established asset manager who can provide you with marketing support. Resolution are one company in the UK who do this - Thames River another. If you don’t want marketing/risk management/trading facilities from a 3rd party, then in the UK there is capita (rubbish) IFDS (ok) Marlborough, and a couple of others. If you are looking at a UCITS fund, then Dublin is ok (state street are the main players), Luxembourg (always terrible), plus each EU country comes under UCITS. You then get issues (depending on what you are investing in) regarding double taxation treaties, local securities law. Seed capital - you need to sell yourself to an asset manager, possibly with a life company attached to them! Obviously you’ll need to be bloody good to get a life co to take a punt on you. Credit Suisse also run an incubator fund that invests into start up fund managers. If you just want a more entrepreneurial enviornment to work in, perhaps changing jobs to a boutique asset manager where you can get hold of some stock might be a better option.
dude, if you’re coming to AF and trolling miscellaneous websites for advice on how to start a fund, you’re unqualified to run a fund, period.
That’s probably true, wegowayback, but not a guarantee. I mean, plenty of people out there are investment professionals who are good at managing money, but because they have an employer, they’ve never had to set up a fund. It’s not the sort of thing one can ask contacts at their existing employer. However, sounds like the original poster needs more contacts, not only to figure out how to set up the fund, but to guarantee that he’ll be able to raise money. Unfortunately, 29 year-olds often don’t have the contacts or credibility to raise a fund successfully on their own. And even if a 29 year-old has done well in the past 2 years, that’s not a very long performance record for an aspiring fund manager… Perhaps team up with a more seasoned professional or following chrismath’s advice would be best. Or waiting 10 more years.
Use your parents contacts. A friend of mine raised $25M in a matter of three months. Yes, lawyers do suck. The hourly fees are crazy, but look for the packaged deals, will save you a ton.
Ha ha… That’s funny to assume that another’s parents travel in a crowd that would hand $25mm over to a twenty-something. I’m sure, in some circles, it’s like hitting friends up for a charitable donation because you’re running a 10K.
No, the funny thing is that my buddy got $25M when he was only 22, a year out of undergrad.
How’d he end up doing with it? Or is it too early to tell yet?
The dude did horrible at the end of the day. For a year or two he was up almost 25%, but then lost 80% of the fund value in three months. The craziest thing is that none of the “clients” ever complained. I guess it must have been a real pocket change for them.
I started my own fund monday…I was up large last night before 9pm, then I hit the ballet, couldn’t cover a margin call around 11…my boss at my old firm swooped in to save the day. Sadly, I’m back at my desk at the old firm today.
cfa2grunt Wrote: ------------------------------------------------------- > That’s probably true, wegowayback, but not a > guarantee. I mean, plenty of people out there are > investment professionals who are good at managing > money, but because they have an employer, they’ve > never had to set up a fund. It’s not the sort of > thing one can ask contacts at their existing > employer. However, sounds like the original > poster needs more contacts, not only to figure out > how to set up the fund, but to guarantee that > he’ll be able to raise money. Unfortunately, 29 > year-olds often don’t have the contacts or > credibility to raise a fund successfully on their > own. And even if a 29 year-old has done well in > the past 2 years, that’s not a very long > performance record for an aspiring fund > manager… > > Perhaps team up with a more seasoned professional > or following chrismath’s advice would be best. Or > waiting 10 more years. i would say his age and experience have little to do with what i said. for all i know the guy is brilliant and the next buffet. but it’s irrelevant, because if he were qualified to actually run a mgmt company he wouldnt be hitting up AF for advice. it’s just that simple.
Thanks for all the information, very usefull!
The mere fact that he calls himself a “senior portfolio manager” is extremely suspect considering his age. Senior portfolio managers under the age of 40 in LARGE FIRMS are few and far between. Sorta like being a US Senator before the age of 40. Happens… but it’s rare. PMs lying about their credentials is a huge risk with new funds.