Over the last week or so, I have received a number of questions asking what is the most important thing to do when launching a fund. My answer has been and always will be the same – START.
It takes a lot of guts, some glory and a fair bit of financial wherewithal to go out on your own but if you want to succeed at this “sport”, the only way that you actually can make it is if you get in the game. And the only way to get in the game is to get the documents done, find some investors and start trading! There is probably a checklist somewhere of all things you need to do in order to get the business up and running. Many of the law firms that specialize in hedge fund launches offer a things to do list of sorts. If you can’t find one – send me an email and I will get something to you.
If you are seriously thinking of launching a fund and have made the life decision to get in the business – again you need to actually do it. Nike said it best. “JUST DO IT!” Start by meeting with lawyers, prime brokers and accountants and circling money that you can use to both fund the operation and the investment vehicle. And before you know the ball will be in motion and things will start to happen and take on a life of their own.
It is very easy to go to meetings and talk to people and say, “I am going to” do this or I am planning on doing that. Investors hear this “theme song” from prospective managers all the time. It has been my experience that when they hear these words, they simply tune out the rest of your pitch. Investors like decisiveness and actually launching a fund is decisive.