Bullseye Capital Fund Started - Post 1

I am in the process of forming a co-syndicated private equity fund called Bullseye Capital Distressed Asset Opportunity Fund I.  The fund is set up as a series LLC where we can raise money in different series over time according to the 506 exemption.  Tonight we had a second meeting to review the operating agreement and go through how the waterfall structure will work.  A few weeks back we signed and executed the principal’s agreements.

We are also in the process of forming committees.  I will be serving on the acquisitions committee and will likely participate in the communications and finance committees as well.  Each committee will be tasked with developing processes for how the fund will operate and will give the directors guidance on procedures for operations going forward.

Several investors already have a significant amount of money raised for the fund, but we are waiting on the PPM and subscription agreements to be finalized so that we can start accepting money.  The beauty of the co-syndicated model of the fund is that each director/promoter can aggregate the money they raise with the funds of the others and receive a pro rata promotion fee in proportion to his effort.  This allows us to collectively raise a significant portion of money and fund bigger deals without having to rely on a single entity for the lion’s share of the promotion.

In later posts I will detail additional details about the fund and how things are proceeding.