Many people believe that there is only one or two ways to get into funds.
The first is that your parents have to be rich and famous and already have a fund…
The second option is a little longer:
You have to go to a prestigious school….
You need a great, competitive internship…
You have to work as an analyst at a top firm for 3-5 years…
Get an MBA…
Rack up lots of debt…
Become an associate and climb the corporate ladder for 5 more years…
THEN you are ready to branch out on your own.
Well I didn’t do either of those things,
And I have plenty of students who don’t either.
For complete transparency my father manages a multi-billion dollar fund,
But he made me do it all on my own and I am so grateful that he did!
Because of him I had to learn through trial and error and now I am able to help others start funds without the two ways listed above.
So today let’s debunk those myths and talk about the right way to start a fund today,
Starting Funds the Unsexy Way
My dad grew up in North Las Vegas.
Like ghetto area.
In high school he got Bs and Cs.
In college he got about the same grades.
But he branched out and decided to figure out funds on his own.
And over a decade he and his partner scaled their fund to over $10 Billion in AUM.
Now I didn’t know any of this until I was in college and then I decided to start my own fund.
And to this day my dad has never given me a dollar for any of my funds.
But he was a great mentor.
#1 thing of starting a fund the unsexy way is to get a good mentor or program.
Without my dad and some other people in the fund space that I have met I wouldn’t have been able to learn,
Or I probably would have been scraping by.
So find a good mentor or join our facebook group and program to meet some!
#2 thing is to find an asymmetric deal.
An asymmetric deal means something with low downside and high upside potential.
It can also mean an idea that is pretty much full-proof.
You have run the numbers and figured out that all you need is money to make it work.
#3 is to get soft commitments.
Once you have a full-proof deal you should find investors and pitch them with a soft commitment.
Once you get enough money in soft commitments to fund your deal then move on to the next step.
#4 is to get your fund documents.
When you have the deal and you have the commitments then you are ready to draft your fund documents and get prepared.
#5 is to launch your fund.
You’ve done it!
You’ve launched a fund!
Now I know I broke it all down very simply but it really is just that easy.
Did it take 10 years?
Did it take rich parents?
Did it take a Harvard degree?
This is exactly how I did my first fund and how many of my students have done theirs.
It will take some work but it doesn’t need to be long or complicated.
Starting a fund doesn’t need to be a long journey or a difficult one. My course has laid out the path to get there, all you have to do is take it.
Don’t fall into the trap of thinking you need to take the long and grueling route to fund management.
There are plenty of people who haven’t.
There is a simpler and easier way.
What is keeping you from getting started?
Let me know below.
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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.