Private Equity Firm formation

5 Replies

Question:

Has anyone looked into starting or has started a private equity firm of their own?  Dream big!!

A private equity firm that stabilizes and streamlines investments nation wide is my dream. To me the ultimate goal is to ethically take ownership percentage of businesses and streamline operations making them more profitable and then selling, leaving everything and everyone in a better place then before I got involved. This can be done with manufacturing business, service business, hotels, apartment complexes, new developments, MHP, storage, ect... 

I would love to chat with anyone experienced who has explored this in any fashion or is doing it now.  

Marques

@Marques Johnson , Private Equity as an asset class and business had its start, albeit on a small scale, in the 1960s, and exploded in the 1990s.  

Most shops are specialized.  Almost all rely on raising capital from institutions and rich individuals.  In order to successfully raise capital of this magnitude, the founders must have a track record of success in the specific field of specialization in a size and type the same as the proposed investments.

In order to acquire a track record of success it would require that an individual begin as an employee of an established private equity, buyout, or similar company, and advance to a level of responsibility for decision making as to investments.

Candidates for these positions are culled from the top graduates of the top 5 MBA programs, or sometimes PhD programs with a degree in a specific tech field related to the endeavor.

More attainable to the person without said credentials would be to establish a track record of success in real estate investment and put together a small to medium size syndication with a significant seed investment by the operating partner.

@Marques Johnson PE shops are a dime a dozen these days. @Don Konipol has given you a great background/info.

You need to pick a niche and dig a deep moat around your specialty. Catering to everyone and everything will mean that you end up doing nothing.

Thanks for the info everyone. It sounds like a steep entry point into PE but maybe a syndicate is more what I am thinking...

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