The Most Important Step When Launching a Fund

What’s up, everyone? Today, we’re going over the most important step when launching a fund!

We’ll also discuss why people start funds; why they’d want to do it.

I want to expound on a few points that Ted Seides made in his book, “So You Want to Start a Hedge Fund?


“People want to put their name on the door.”

Ted Seides

Many financial background individuals end up working for other names their whole career. It could be Goldman Sachs, JP Morgan, or another last name.

This is great, but people want to make a name for themselves so they can get fame or start a legacy.


“Others yearn to break through the constraints placed on their investing activities.”

Many people who want to start funds are ambitious and thrive as entrepreneurs.

They are tired of working for other fund managers and want to branch out on their own.


“…driven by the desire to compete at the highest level.”

Some people just love the game of investing and alternative assets

In the finance world, working for a fund is the top tier. The only thing better is managing the fund yourself.


Everyone wants to make a lot of money. This can be both good and bad.

Some people just want to be financially independent, and others just want to make insane amounts of money.

The latter reason isn’t bad, but it can hurt you early on if you aren’t putting your investors first.

As a fund manager, your core objective should be to make money for your investors.


So, what’s the most important step when launching a fund?

Finding your ‘why.’

It sounds cheesy, but your ‘why’ will get you to launch your fund.

Whether your ‘why’ is fame, legacy, competition, money, or a combination of all of them, find your ‘why!’

That’s it for today!


Bridger Pennington

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 author.

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