What’s up, everyone! Today I want to teach you how to build a hedge fund incubator!
We’ll discuss a strategy that will help you build a track record, file documents, and raise money!
Hedge Fund Incubator
If you’ve seen my other videos, then you’re familiar with the general partnership (GP) and limited partnership (LP).
For an incubator, you take money from the GP and invest it into the LP (fund).
Using your GP instead of outside investors is a great idea if you don’t have a track record yet.
That being said, the only benefactors of the fund are members of the GP. GP members are team members like traders, managers, or whoever is contributing.
This is a nice approach because you don’t have to deal with any licenses!
Check out my Syndication video to get a walk-through of setting up a GP!
How to Scale
So, what if my friends and family want to invest?
They can’t unless they’re part of the GP.
However, while the incubator phase is going, you can prepare to take on outside investors (getting the docs ready, pitching investors, etc.).
Then, once you’re ready, wire in the outside investor’s money and smoothly start your hedge fund!
So, that’s how you can build a hedge incubator fund!
It’s a simple approach that has enormous potential!
Check out our video to get more details on incubators!
That’s it for today!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
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.