Starting Investment Company, For Beginners
I am studying for the Series 65 and want to start an Investment Company. I have family and friends interested and the seed money will be approx. $2million for starters. The bulk of that is from one person so not all of my investors are accredited investors. I'm looking to start a small LLC once am licensed.
1. I want to be able to charge a performance fee along with a management fee but not 2&20 but something else--don't quite know yet. Should I start an RIA firm or a Hedge Fund? I've heard that Mutual Funds are quite expensive to run. I'd like to keep this legal structure as simple as possible.
2.如果我成立了RIA公司，我仍然可以收取绩效费吗？如果没有，我有什么选择？
3. Can I start a Hedge Fund if not all my investors are not accredited?
4. Once up and running, I'd like to have a system in place where I can allocate shares across all accounts at the same time. Is there a system/broker that will allow me to do that?
Thanks all
Comments (86)
请意识到，经过2毫米的法律费用，费用等。您的钱很少。不足以谋生，这是假设2/20。
Why would you charge your family a performance fee? Are your friends and family willing to pay a performance fee? Sounds like you want to charge something like that because it's some sort of standard. The days of 2/20 are gone and your friends and family should just pay .5% with index fund but hey more power to you if you want to charge them.
Yes, your investors have to be accredited for a hedge fund.
Please don't risk friends/family money because you have a deluded sense that you are prepared to manage money.
If you feel like this is your desired end route...call up your localBBPWM/GWM Branch and present a business plan. If you can survive the training program and bring in assets to meet your hurdles/ - perhaps there is a case to be made that you could survive on your own.
By no means am i telling you to abandon your dreams ; i just want to impart on you that still do not know what you do not know.
But i put all of my aunt josie's retirement $ in $GPRO and that's doing fine!
但是，感谢所有人的帮助，很高兴能从在此问题上有经验的人获得建议。
1. RIAs and hedge funds are like apples and fire hydrants, both red but completely fucking different. difficult to say what's best but I'd talk to an律师
2.可以而且应该是两件不同的东西。许多允许您设置为RIA的BD确实会推出固定费用，而不是2和20，所以我会问。据我所知，没有什么是违法的。
3. 99% sure the answer here is no. hedge funds have the benefits they do because their investors are accredited, period.
4.任何知名的主要经纪人和清算公司都可以做到这一点，但是在$ 2毫米的AUM时，您没有资产来获得一个非常好的系统。
but I agree with everyone else who has posted warnings and will post warnings, don't do this. I'm sure you want to help but we get questions like this all the time and the short answer is you don't have the experience to manage family money just yet nor do you have the resources to start a reputable firm.
if you're really good, find aAM/HFshop that wants your services and get your friends & family to invest with them. alternatively, you could start a newsletter but not operate as a RIA and I think that would limit your legal liability. check with an律师on that though.
Good insight, thanks
I've set up an investment company with my brothers. We each own a third through our private holding companies. Hardest part is actually agreeing on where to invest the money, but we have a clause that we can buy a stake from each other at a premium to the underlying investments.
CNBC sucks
"This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
What's the legal structure of your company? I think if the funds are pooled together for investments you have to be properly licensed in order to do that; but i'm not sure.
Joint-stock company. No need for licenses and since I own less than half of the company in question, we are still classified as a retail investor through current MiFID regulation.
CNBC sucks
"This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
4. Interactive Brokers has a feature. I think it's called Family & Friends or something like that.
Yes, thanks for answering but before that, I need to figure out everything else before I can get to that point.
Thanks, I'll keep that in mind.
Where can I find peopletradingin Stock market specially in Singapore and Malaysia ??
Starting an investment company, using only my own money?(Originally Posted: 02/12/2014)
How does it work, I have no intention of using other peoples money. What kind of barrier (if any) will I have.
现在有什么吗，我可以使用有限的公司或独资商。
So how is this a company?
我当时认为这将是一家控股公司。仅我的投资（不超过50％）将在控股公司的领导下举行。
WTF mate - get your shit together and then ask. But this is properly a fucking waste of time.
There are millions of ways to set up a company.
您有什么用途。您会从公司中偿还自己吗？您在美国还是福克兰。把你的狗屎放在一起，与此同时，要花一些猴子狗屎，因为他们不知道关于生活的一件事，而不是先谷歌搜索。
Aside from blasting you on the obvious, you kind of need to give more information. There's a bunch of different structures depending on what you're trying to accomplish.
How about we speed up the process of you loosing all your money and you just give it to me instead?
All I have done so far is purchased a 30% and 10% equity stake in two different companies. I wanted to know if I could transfer these holdings into a Limited Company. Would that be worthwhile or best to just continue holding them in my name.
What's your tax rate - where are you based - what assets do you have ASIDE those two holdings - where do you want to incorporate
该死的你很厚！
Next by jdn - I want to work in banking, what bank is the best to work at?
My lawyer told me if your not starting with a miilion plus. A llc will be just fine.
您是否正在尝试创办购买业务的业务？
Starting an Investment firm(原贴:09/14/2014)
Hi all,
I am thinking about setting up an Investment firm to manage investments from US based investors and to invest in India specifically in Real Estate Industry. Can someone tell me what type of company should be formed and do we have any specific fund type around this business model ? Thank you
Speaking from experience:
1. An RIA can manage anything from '40 Act funds (mutual funds) to separate accounts, or a hedge fund. If you want to solicit non-accredited investors registering is the way to go. You can always set up a GP/LP structure later.
2. Yes, but only to qualified clients (>$2m net worth) and non-US clients. That is the case for aHFas well. Other clients pay only management fees. Note performance fees in separate accounts do not get carried interest treatment.
3. You are limited in the number of non-accredited investors you can sell LP interests to - depends on the type of legal structure, but IIRC it is no more than 35 over the life of the fund and subject to some limitations.
4. Highly recommend Interactive Brokers. You can open accounts under the advisor structure immediately but need to be licensed before you can charge fees.
thank you for your response, it was very helpful. Just one more question: Knowing that I won't be starting a hedge fund; and not so much a mutual fund; can I start an investment company that does not fall under the '40 Act--such as Mutual Funds (open/closed) etc.? Sorry but this is all new to me and I'm learning as I go along. Thanks
这里有一些不友善的评论，但是它们确实提出了一个公平的观点，即如果您在解析基本的法律结构上遇到很多麻烦，那么在您独自一人进行之前就可以获得更多的经验可能是明智的。
The term investment company (http://www.sec.gov/answers/mfinvco.htm）指的是共同基金，也称为'40 ACT资金。大多数投资公司的监管要求通常比经营对冲基金（基本上是不可注册的投资公司）或注册投资顾问更高，更昂贵。您可能需要考虑组建一个可以建议单独帐户的投资顾问。如果您在道路上成立了该实体，该实体后来可以担任对冲基金或投资公司的顾问。
get a lawyer.
CNBC sucks
"This financial crisis is worse than a divorce. I've lost all my money, but the wife is still here." - Client after getting blown up
It's called private equity
就像 @works9-5所说的律师。有很多变量，但是您需要在印度建立一家公司，这是屁股很痛苦的，尤其是如果您不是公民。我忘记了那里最好的类型。大多数情况下，您可能会为了税收目的而在毛里求斯中有一个阻止者实体。下一个级别将完全取决于您的投资者是谁。如果是我们所有的人，您可以做有限责任公司（或多个LLC）。如果有非美国人涉及的人，则完全取决于他们的税收住所。
You'll also need to investigate fdi and capital restrictions of bringing capital into India. I haven't done anything there in a few years so I forget the specifics but there are all sorts restrictions on investing foreign capital, especially debt, there.
谢谢伙计们。是的，最终我会与律师交谈，但我需要了解我真正需要做的事情。
I am not going to setup a company in India, I have spoken to a few companies where will our firm will be investing directly on their projects ( I believe in FDI model ) and eventually returned with profit to our US company and we will keep our margin and return it to the investors. All the investors are private investors and the companies in India where we will be investing are also Private companies. Do you think for this kind of setup I would be needing permisson from any organization in the US ? thanks
Hi there,
Can I setup a Private Investment company be the Owner of the company and have around 50 active investors including myself? i.e the investors collectively decide where to invest. In this setup should I have the company registered with SEC ? or I can register a LLC and that would be sufficient ? thank you for the help.
Any assistance will help me. thanks
Can anyone provide any input on this ? thank you
tempaccount是正确的。您只能作为RIA收取绩效费，如果他们与您有一百万美元或200万资产。根据Tempaccount所说的某些规则，必须认可对冲基金。40年的《 IA法》和IC法案将为您提供大多数答案。祝你好运。
Kids Who Try to Start Investment Management Businesses Straight Out of School(Originally Posted: 03/13/2015)
Hey Monkeys,
Was trolling on LinkedIn and came across this profile:https://www.linkedin.com/pub/andrew-donahue/54/188/761
Would be curious to hear people's thoughts on kids who attempt this. In my opinion it's pretty damn hard to raise money from anyone outside of family/friends if you do this....
有点愚蠢的举动，尽管它为比尔·阿克曼（Bill Ackman）工作。
嘿，您认为投资为时已晚吗？这检查了我的投资清单上的所有内容：
1. Incredibly long intro written in the third person that makes no sense whatsoever
2. Experience managing fake money in a portfolio game
3. No relevant experience whatsoever
4. No college degree
5. An unregistered LLC with no website
他还拥有骆驼的谱系和智慧。算我一个。
lol
6.看起来像一个主要的douchebag
“他更喜欢辩论想法，销售/购买产品，管理人员/项目，娱乐客户和演讲，而不是表演需要高度集中和关注分钟细节的表演功能”，我对有多少言语迷失了方向。这个孩子必须是个白痴，也许他应该花更多的时间专注于撰写另一个介绍时注意细节。
The bio is absurd. Makes me LOL everytime
The bio is absurd. Makes me LOL everytime
哇,这家伙还这么年轻所以完成。他s clearly grinding. He seems like a winner, you guys should stop berating him. What have you done with your life? He was a pizza delivery guy and now he own his own investment management company. Pretty impressive in my opinion
How are you liking FDU, Andrew?
Hilarious! !!
Colleges should have a "this is harder than it looks 101" course for every major.
Stopped looking at seeing that banker's shirt.
he's a bookkeeper
等等，花花公子在PWM实习时交付了披萨吗？他是否在比佛利山庄（Beverly Hills）交付，这就是他抓住客户的方式？
Look at all these wannabe richies hating on an expensive salad.
https://arthuxtable.com/bump
He is also involved in MMA.
So he can tackle the tough obstacles for investors. Duh.
Well, Bill Ackman went to Harvard andHBS，他在一年内获得了33％的回报。这个孩子看起来像帕特里克·贝特曼。
Anyone here plan on emailing him this thread? I just wishWSOwould let unregistered users read more than a few comments, because I don't see him taking the time to make an account.
but he's got the blue shirt with the white collar tho...
I love how he delivered pizza while interning inpwm.
bump, this kid needs more exposure
I think the reason this gets so much bad viewing is because the young ones that DO attempt this do it all wrong, usually knowingly and purposefully. They constantly lie about the majority of the details, exaggerate claims, don't file the necessary documents to even have the business established in the first place, etc. It's just an awful compilation of terrible. Why try and pretend like you're some sort of genius with edge and particular talent that no one else has, all at age 22?
I am one of the young ones that did this which is why it's particularly frustrating, granted I'm doing it more as a case study in order to help me obtain a job versus trying to "make it". I filed my two entities in TX and DL, form D with the SEC, annual reports with both state Comptrollers annually, third party providers for annual auditing, FS preparation, and investor statements, etc. I'm not some sort of genius master of markets, in fact I don't think I have any particular "edge" at all. I just have a simple strategy that has worked for 3 years thus far and that's it. No fancyBSword usage I don't understand, no exaggerated claims, no unnecessary complexity, that's it.
Just a sad mindset when you can't just be yourself that you have to craft an entire story and then maintain it. Effort would be better spent on actually executing that story...
“我只是一个简单的策略，到目前为止已经有3年的时间了，仅此而已。”它被称为“骑行”牛市战略？
“强烈的思想讨论思想，普通思想讨论事件，虚弱的思想讨论人们。”- 苏格拉底
Would it possibly be better to start an LLP, have the friends/family join as partners, focus initially on unsexy investments (laundromats/car wash/etc) and then once (if) you get more AUM, move into more hedge fund like investments?
Starting an investment company(Originally Posted: 12/08/2014)
嘿，所以我去了一所目标商学院，我的成绩相当不错，我有一些实习IB和对冲资金。但是，我意识到，而不是直接进入IB或我想自己做的东西，看看它是否会变成东西。
Therefore, I wanted to try and start some form of investment firm out of college. As this is a relatively new idea, I wanted to just generally ask if anyone has a suggestion concerning potential forms of investment companies that one could start from college, i.e. that are beginner friendly (I'd have around $100k in starting capital)
恶劣房东。我不是在开玩笑。我有两个朋友done very well, separately, buying & managing rental housing in low-income areas. Each had > $100K in starting capital but not that much more. It's not for the faint of heart though. Not only do you have to deal with tenants who will often be lowlifes or deadbeats, you have to do your own renovations & maintenance whenever possible to keep expenses down. But once your enterprise grows to a certain size, you can outsource the management, hire contractors for all onsite work, and shift your portfolio mix into better neighborhoods, as you build your 25,000-rental unit empire.
A well-known example of this trajectory is Fred Trump, Donald's dad. Their real family name, BTW, is "Drumpf."
I wouldn't fucking trust you to run to the store and buy a gallon of milk with my money. How did you convince your friends and family to give you anything? Are they all locked up in a basement somewhere? I feel like we should call the authorities.
Starting a company for investments(最初发布：2014年7月16日)
I run a company. We (my partner and I) have done quite well. We have a few dollars saved up so I told him why not invest the money since we are generating a lot ofFCF. He agreed however he is a tech guy and I am the finance guy, so we want to launch a corporate subsidiary that sole purpose is to Invest the cash into stocks and bonds. I used to trade and created algorithms back in the day but never went into anIBor finance shop to explore it further so I don't know much about structure besides trading. Before I waste a few thousand on a lawyer's opinion I rather get a consensus first. My main question is if I set up an LLC or corp would I need to get registered with the SEC and get licences from FINRA, or is that only when the fund seeks outside capital?
You don't need any licensing if it's your money. I like LLC's and you probably want to consult an attorney to draw up the operating agreement and other docs but you don't need to deal with finra if it's only your money. But are you sure you want to do this with your operating company partner and not just on your own? If you're the finance guy and he's the tech guy and you lose money because you did something wrong (and I don't mean illegal wrong, just a bad strategy) or just through shit luck will he blame you and taint your real business?
starting an "investment" company(Originally Posted: 12/25/2009)
If I have family and friends who have some money they are willing to invest in safer asset classes, and I create a LLC, or LP, sort of an investment vehicle - miniHF, with business model of executing some simple ideas, nothing the people giving me money couldnt do themselves except might be time consuming. Lets say 3mm total from 10 ppl. What kind of bank account do I have to create, would a simple business checking account suffice? or do I need a special account with "JPM/GSglobal client etc etc." I'm guessing personal bank accounts won't work. Do I need an administrator for this.
If I have to register as an official hedge fund, and get blue sky, i can imagine all the administrative fees adding up, and lots of regulatory obstacles (anti money laundering, audit, accounting requirements) Not looking at spetacular returns, so the fees will kill the idea.
Also, anyway to create a partnership/operating agreement without hiring a 30k law firm?
Just wondering if there is anyone on this site who has done similar things and have any advice to offer.
您要做的就是建立是一家独立的财富管理公司。不要让它比以前更加困惑。您必须支付一小部分AUM（可能约为0.25％），并寻找为独立财富管理人员提供服务的经纪人/经销商。他们将发送帐户报表，清除您的交易，为您提供机构研究，为您处理SEC，提供法律支持，等等。
您应该能够以1-2k的律师事务所在律师事务所制定所有文书工作。取决于您从事冒险的复杂程度。尽管这确实取决于您的费用结构。财富管理公司不能向客户收取一定的利润。对冲基金可以。财富管理公司只能为每个时间段收取固定费用或收取AUM的百分比。因此，您必须让我们知道您如何向客户收取费用。
Or you can do it unofficial and sign some documents and just store the money in a bank account.
Good luck, and be careful with your friends and families money.
Best of luck to you, but why call it an "investment" company? That is, why the quotes? That'd be enough to scare me off.
Contact this guy:http://www.greencompany.com/
Thanks guys, that's very helpful.
I'm suprised 0.25% AUM is all it takes though. While it will operate more like wealth management firm, how I make money will be like aHF- % of profit. It won't be particularly complicated, no preferred/catch up. I have to think more about a high water mark.
不知道为什么我在那里有报价，但是，是的，我当时认为我不会对任何公司进行深入的分析。
I'll have to go through the site another day, looks interesting, thanks.
只是想知道您最终正在做的事情以及到目前为止的经验吗？
started my own investment advisor firm, need some feedback(Originally Posted: 01/18/2011)
So I graduated from college a while back and haven't found a job in the area of Asset Management, and I wasn't very attracted to working for a wealth management firm. Like most people said, there was very good exit opportunities present there.
So instead I started my own investment advisor firm, and currently manage about 1/2 million for a few clients.
这种方法将如何使我成为交易或PM职位下的良好状态？
I'm still knocking out myCFAexams.
Also does my investment advisor firm count as a family office as specified by the SEC? I still haven't registered with the SEC because I'm not managing over 25-30? million and don't have more than 15 clients.
I've seen family offices convert into hedge funds, but I just can't launch a hedge fund now cause none of my clients would qualify as accredited investors... (sob) and I read that I need atleast 5million aum to launch one anyway due to the fees. Although the prime broker I use for custody isn't so expensive?
Anyway, need some feedback on my career options in asset management after going the self-employed way.
500,000 in AUM.. industry avg prob 2-3 percent? so your making about 10K-15K a year less expenses.I used to work at an RIA / BD and the beginning is definitely the toughest, which is why I chose another career. But the principals at my firm used to golf all day, have one hour of calls/ meetings, and then handle the occasional emergency. Not a bad life if you don't mind the hard start up.
Good thing is that you can build out your book and depending on your success can either continue the independent route or it def can give you a leg up on most candidates in your position once the economy picks up.
Incidunt veritatis iusto mollitia fugiat recusandae enim sed. Illum dicta quo voluptatem deleniti. Blanditiis omnis dolor nesciunt sint fugiat.
Aliquid cum esse enim id. Esse perspiciatis dolores eaque quibusdam. Quidem nihil qui ducimus aut quia et velit.
Qui maiores quam eius beatae magni est. Omnis sint non inventore. Suscipit quam quas quam est. Modi vero est aut non consequatur dolorem. Aut dolorem quos repellat minima. Iusto corrupti autem est nemo temporibus ipsa.
See All Comments - 100% Free
WSO取决于每个人都知道某事时能够参与进来。解锁您的电子邮件并获得奖金：6 financial modeling lessons free($199 value)
orWant toUnlock通过签署您的社交帐户？
Quas eos magni expedita doloribus. Illum sed ullam architecto voluptas voluptatem nesciunt earum.
Sint nemo sed reprehenderit placeat. Corporis iure omnis ut sint.
VEL IPSAM VOLUPTATIBUS SAPIENTE颞。Nulla Quo Nemo Labore Architecto EA。Harum Architecto Quia Qui Similique。
dolore odit别名cupidates cocusantium iure eum doloribus。数量DEBIS COCCUSANTIUM VOLUPTAS MAGNAM PERFERENDIS EUM REACUNTUR DOLORIBUS。Quia ex ruffeci accusantium fugit。EST VITAE DOLOREMQUE QUI。
Cupiditate cumque悲哀也et unde. Qui vero id eaque facere. Et ipsam aspernatur nobis ratione soluta consequuntur quos aut.
Fugit voluptate quas aut in similique quibusdam veritatis. Illo commodi architecto aut quisquam. Reiciendis vero qui odio ab assumenda sequi mollitia. Est et laboriosam minus hic aut qui.
Ea incidunt qui est. Animi occaecati atque veritatis recusandae ea. Consequatur magni est et nihil doloremque assumenda veniam inventore.
facilis ut ut ut nobis perspiciatis。均匀的Nihil Est Magnam Enim。
Preview & download comment as image
You can download this screenshot as image or copy to clipboard using browser's context menu