Tips on How to Start a Private Fund

[Josh Sullivan]

Hi BP Community, 

I have been working in commercial development for almost a decade, primarily in acquisitions/underwriting/market research. I started doing third-party consulting and am now in-house with a developer. I'd like to take advantage of the knowledge I've gained and begin identifying investment opportunities for myself. 

I have a number of fraternity brothers, friends, family etc that have all asked about investing with me at various points. It would not be enough equity to justify a Private Equity Real Estate Fund, but am unsure what other fund type it would be classified as? Joint-venture? Limited-Partnership? LLC? What entities would I need to set up and what exposure would I have from regulatory and taxation stand-point? I am based in New England.

30,000 foot view of my model is  to identify underutilized/value add opportunities and raise capital on a deal-by-deal basis (multi-family, industrial and self-storage). I would prefer to make up the down payment of friends and family and debt for the rest. Open to any and all suggestions. 

Thank you all!

[Charles Carillo]

@Josh Sullivan

This sounds more like you will be doing individual syndications for each deal and not a fund. Most syndicators graduate into setting up funds once they have been successful with several individual syndications. I would start researching syndications while reaching out to SEC attorneys. DM ME if you need a list of them.