Fund Manager How-To Guides — Batch 3

Fund Manager How-To Guides

Comprehensive, actionable guides for emerging and established fund managers — from launching your first fund to managing LP relationships and regulatory compliance. Built on 27+ years of experience facilitating $1B+ in capital formation across nearly 1,000 raises.

1. How to Launch Your First Fund — Emerging Manager Guide

   Legal entity selection (LP vs LLC), fund documents, service provider selection (attorneys $25K-$75K, fund admin $2K-$5K/month, auditor $15K-$30K/year), timeline (6-12 months), minimum viable fund size, and GP commitment expectations.

2. How to Write a Fund Private Placement Memorandum

   Fund PPM vs deal PPM differences, required sections (investment strategy, risk factors, fee structure, conflicts), attorney costs, timeline, and common LP negotiation points.

3. How to Build an LP Outreach Strategy for Fund Raising

   LP universe mapping (pensions, endowments, foundations, family offices, HNWIs, FOFs), targeting by allocation strategy, outreach channels, the 200-500 LP funnel, and timeline expectations (18-24 months for Fund I).

4. How to Structure Management Fees and Carried Interest

   2/20 industry standard and variations, fee calculation methods (committed vs invested capital), hurdle rates (6-8%), catch-up provisions, clawback mechanisms, and American vs European waterfall distributions.

How to Choose Between a Placement Agent and DIY Fundraising

Decision framework based on fund size, network, and track record. Fee comparison (2-8%), minimum fund sizes by agent tier, what agents actually do, red flags in agreements, and hybrid approaches.

How to Set Up Fund Administration and Reporting

In-house vs outsourced administration, NAV calculation, capital call/distribution processing, investor statements, K-1 preparation, audit coordination, technology platforms, and cost benchmarks by fund size.

How to Navigate FINRA and SEC Registration Requirements

Investment adviser registration (SEC vs state), exempt reporting adviser status, Form ADV, Investment Company Act exemptions (3(c)(1) vs 3(c)(7)), broker-dealer requirements, compliance programs, and CCO responsibilities.

How to Build a Track Record as a First-Time Fund Manager

Track record portability rules, co-investment track records, deal-by-deal carry history, angel investing as track record, GIPS compliance, attributable vs team track records, and what LPs actually want to see.

How to Structure a GP Commitment

Industry standard (1-5% of fund), cash vs management fee waiver, GP entity structure, co-investment by GP, alignment of interest considerations, and creative solutions for capital-constrained emerging managers.

How to Handle LP Quarterly Reporting and K-1 Distribution

Quarterly report template and sections, NAV reporting, portfolio company updates, capital account statements, K-1 timeline requirements, common LP complaints, technology solutions, and ILPA reporting standards.

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