Hedge Funds from Square One

This video dives deeper into starting a Hedge Fund from scratch.

How long should you wait to start a fund?

Based on the metrics from people who take my course and from the demographics on my youtube channel I get a lot of interest from people between the ages of 18-35.

The problem is that most people in this age group don’t believe they can start a Fund…

But they are wrong!

Take these people for example and the age that they all started:

Warren Buffet – 25

Ray Dalio – 26

Ken Griffin – 22

You probably recognize at least one of them and you’re probably thinking,

“But Bridger, they are all geniuses and it’ll take me years before I’ll even be close to starting. I have so much to learn!”

Fair…

But my next example is of someone who was like a lost puppy in the rain when they started…

ME

And I started one at age 22…

The point I’m getting at is not that you have to start young but that if someone who is young (and inexperienced) can do it, then anyone can!

Mapping It Out

I’ll take you through the basics of what starting out looks like and answer a few common questions I get.

#1 What is a Hedge Fund?

Any Fund you start whether Private Equity, Venture Capital, Real Estate and so on is just a pool of money that you have gotten from your investors that you use to go and invest in deals that you find.

You then take the money you make from the deals and split that profit between the manager and the investors.

#2 What is the Structure of a Fund?

Typically this is a General Partner, Limited Partnership Structure.

This is how 99% of funds are set up.

An easy breakdown is:

General Partner – The entity that owns the Fund

Limited Partnership – The Fund

Fund Managers (YOU) – Owner of the General Partner

Limited Partners – Investors

More simply, Limited Partners put money into the Limited Partnership and then the General Partner invests the money.

Your Fund can be used to invest in almost anything: Real Estate, Start Ups, Private Businesses, and yes... EVEN CRYPTOCURRENCY!

Your Fund can be used to invest in almost anything: Real Estate, Start Ups, Private Businesses, and yes… EVEN CRYPTOCURRENCY!

#3 What Documents do you need?

There are TWO important documents that you will need…

A LPA and a PPM… Which are each about 100 pages thick!

(LPA stands for Limited Partnership Agreement and PPM stands for Private Placement Memorandum)

We call this the Bible.

We call it the Bible because we get to decide what goes in it and once we do it becomes the commandment or law of that fund.

This will typically cost $30K to get this done and set up if you walk into an attorney’s office.

Through our course we can help people get those costs down with our discounts and connections we have set up.

But, maybe that still is too much money for you to be able to launch your Fund?

Luckily, there is a perfectly legal way to get these costs down even further with a Hedge Fund Incubator.

This is a way to:

  • Build Your Track Record
  • Only pay about $2K of start up costs
  • Decrease Your Risk

It’s too much for me to cover in this article but in the video at the top of the page I go much deeper into this and even share some more secrets.

Conclusion

You are not TOO YOUNG or TOO INEXPERIENCED to start a fund.

Many people have done it, including me.

If I can do it then I know you can too.

I will even teach you how!

I go over everything in my blog, my youtube channel, and my courses for you to start and scale your Fund successfully!

Feel free to reach out and comment below how I can help you.

Don’t be afraid to start.

Bridger Pennington

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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.


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