the lawyer part is true. My former boss was in the process of setting up a distressed real estate fund and I-being the resident bitch- had to do some leg work and interact with the blood suckers. The lawyers are the key. You first need to satisfy securities law, and then, more importantly need to have a solid agreements that give you outs so you dont end up getting sued by your own investors. That much is obvious but there is tons of fiduciary, agency relationship crap that needs to be addressed. Our consultation for a basic setup of only $7-10 M pool was costing ~$60k in drafting fees and consultation for a plain vanilla setup without anything special. Thats the easy part. The tough gig is getting the money. There is plenty of money around but you better have a track record and perform. I had two buddies that started up a fund of $80M, lost some money, had some run ups but overall did not have an impressive track record in the two years they were around. 1 by 1 investors bailed on these smart guys, one of whom is from Goldman. Go figure.
1moreQ Wrote: ------------------------------------------------------- > the lawyer part is true. My former boss was in the > process of setting up a distressed real estate > fund and I-being the resident bitch- had to do > some leg work and interact with the blood > suckers. > > The lawyers are the key. You first need to satisfy > securities law, and then, more importantly need to > have a solid agreements that give you outs so you > dont end up getting sued by your own investors. > That much is obvious but there is tons of > fiduciary, agency relationship crap that needs to > be addressed. Our consultation for a basic setup > of only $7-10 M pool was costing ~$60k in drafting > fees and consultation for a plain vanilla setup > without anything special. > > Thats the easy part. The tough gig is getting the > money. There is plenty of money around but you > better have a track record and perform. I had two > buddies that started up a fund of $80M, lost some > money, had some run ups but overall did not have > an impressive track record in the two years they > were around. 1 by 1 investors bailed on these > smart guys, one of whom is from Goldman. Go > figure. It’s easy to figure. Goldman guys can lose a bunch of money, and they prove it every day.
Channel Islands has one of the best regulatory environments in Europe.