Fund Setup Resources and Education

[Alecia Bolton]

I'm planning on starting a fund.   I'm wondering, for those who have a fund, what resources did you use to learn

1. how to set the fund up (the structure)?
2. what team members you needed?
   
3. how to calculate the ROI for all parties?

Thanks in advance!

[Chris Seveney]

1. I read some other PPM's and googled a few and read them to get an understanding. But really my attorney was the guide on the structure and put together a questionnaire for me to answer and we reviewed it to setup the structure. What is critically important is defining the fund and the setup as that will also dictate a lot of the other questions.

2. It is no different than owning a single note. It should be the entire team. Some people use a 3rd party fund management platform, but it is not absolutely required.

3. For calculating ROI's I had the benefit of having a financial background so I use excel. Again depending on how you setup your fund if you are offering a straight preferred return or offering excess cash distributions this will dictate the fund. For example if you offer excess cash distributions then you are more likely to have a closed end fund vs. an open ended fund as you do not want investors joining the fund late in the game and getting a large percentage of profits when the assets are sold and being invested for a short time. You can also hire companies to do this but its my understanding they are not cheap at all.