Subnostr

I’ve been very intimidated about the regulatory / business documentation side of starting a fund.

Assuming you’re an LLC? Are there requirements for your investors other than being “sophisticated”? Are there documents required to the US government if you’re avoiding RIA designation? Are there thresholds (reporting, etc.) for capital under management to consider?

Is there a good place to research setting up a fund like you did? I’ve looked into it using ChatGPT but the results weren’t specific enough to make me feel confident in setting something up.

less 1y ago

The most important place to start is with an attorney who specializes in hedge funds… especially emerging fund managers.

I have been with Cole-Frieman and Mallon since Vailshire’s inception (pre-inception, actually) and they laid out the groundwork and all of the necessary steps, many of which were state specific.

That would be my primary recommendation to you or any interested in starting a fund or RIA.

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less 1y ago

Note also that the startup and ongoing administrative costs are no joke. It took me years to get back to break even… much longer than I had originally anticipated.

Also, I absolutely abhor fundraising. It’s hard to grow a business from scratch if you’re not a natural salesman (I am not).

Brock 1y ago

Yeah, that’s why I was hopeful to that doing a smaller fund ($50M or less) with fewer participants from directly in my network might have some standard documentation / contracts / agreements that were sufficient to cover the upstart.

The administrative / service state is onerous and costly. Definitely inhibits innovation.