Shawn Nutley discusses how to start your own private equity fund in this in-depth presentational blog. For more information, please visit ShawnNutley.com!

1. S H A W N N U T L E Y . C O M
S T A R T Y O U R
O W N P R I V A T E
E Q U I T Y F U N D
S H A W N N U T L E Y
ShawnNutley.com

2. S H A W N N U T L E Y . C O M
I N T R O D U C T I O N
Private equity firms have been a historiclly successful
asset class, and the filed continues to grow as more
would-be portfolio managers join the industry. More
investors have moved from public to private equity
because the latter has significantly outperformed the
Standard & Poor’s 500 over the last few decades. This
fuels a greater demand for private equity funds from
institutional and individual accredited investors.

3. S H A W N N U T L E Y . C O M
D E F I N E T H E
B U S I N E S S
S T R A T E G Y
The first step is to outline your
business strategy and differentiate
your financial plan from those of
competitors and benchmarks. Make
sure to do an ample amount of
research into a defined market or
individual sector when establishing the
business strategy.

4. S H A W N N U T L E Y . C O M
S E T U P T H E
B U S I N E S S P L A N
A N D T H E
O P E R A T I O N S
The second step is to write a business
plan, which calculates cash flow
expectations, establishes your private
equity fund’s timeline, including the
period to raise capital and exit from
portfolio investments. 10 years is the
typical life of each fund, although
ultimately timelines are up to the
manager’s discretion.

5. S H A W N N U T L E Y . C O M
E S T A B L I S H T H E
I N V E S T M E N T
V E H I C L E
Establish the fund’s legal structure
after early operations are in order. In
the U.S. a fund typically assumes the
structure of a limited partnership or a
limited liability firm. As a founder of
the fund, you will be a general partner,
meaning that you will have the right to
decide the investments that compose
the fund.

6. S H A W N N U T L E Y . C O M
D E T E R M I N E A F E E
S T R U C T U R E
Typically the fund manager takes care
of all provisions related to
management fees, carried interest and
any hurdle rate for performance.
Annual management fees are at 2% of
committed capital from investors and
this is what the manager will most
likely be receiving. The manager will
collect $200,000 in management fees
annually. However, fund managers with
fewer experience may receive a smaller
management fee to attract new
capital.

7. S H A W N N U T L E Y . C O M
T H A N K Y O U !
F O R M O R E I N F O R M A T I O N , P L E A S E V I S I T
S H A W N N U T L E Y . C O M