With the development of the economy, more and more people are considering starting an investment fund with friends and family. This allows pooling resources to access investment opportunities that may not be available to individuals. However, there are many factors to consider when starting a friends and family investment fund. This article will provide key information on capital requirements, operating models, personnel and departments, registration processes, and risk management.
Determining the appropriate structure and entity registration
The documents provided mention that a friends and family investment fund would need to determine the appropriate structure such as a private equity fund and register the required legal entities. This involves working with experienced lawyers to establish the fund and associated companies properly. Considerations include limiting liability, management control, taxation implications, and regulatory requirements.
In summary, while starting an investment fund with friends and family allows accessing more opportunities, great care must be taken in planning the structure, registering entities, developing operating procedures, managing risks and working with experienced service providers.