.png&w=3840&q=75&dpl=dpl_2a4ZDoh4KJEc1Wi7QuXcWc5w5D5W)
Fund Formation, Explained
Plain-language answers to the structural decisions that come before a first close. For strategy-specific launch guides, see the Fund Guides.
506(b) vs 506(c): Which Raise Fits Your Fund
506(b) vs 506(c) for fund managers: what each rule permits, the verification burden in practice, switching rules, and how the choice shows up in your documents.
Syndication vs Fund: Which Structure Fits Your Next Raise
Syndication or fund? Single-asset SPV vs blind-pool fund compared: investor psychology, economics, operational load, and when to graduate from one to the other.
How Much Does It Cost to Start a Fund?
Real numbers for starting a private fund: traditional formation runs $50k–$100k+ in legal alone. Line-by-line costs, what recurs annually, and what changes the math.
How a Private Fund Is Structured: GP, LP, and Management Company
The three-entity private fund structure explained: what the fund LP, GP LLC, and management company each do, why they're separate, and how money flows.
The Documents Every Private Fund Needs
Every private fund document explained in plain language: the PPM, LPA, subscription agreement, accredited investor certification, formation documents, and IMA.
Management Fee and Carry: Typical Terms by Fund Type
Typical management fees, carry, and preferred returns by fund type — real estate, PE, VC, hedge fund, private credit, crypto — and why the structures differ.
The First-Time Fund Manager's Guide to Launching
How first-time fund managers actually launch: proving the strategy, sizing the fund to your LP base, terms that close, the document step, and honest raise math.
3(c)(1) vs 3(c)(7): Which Investment Company Act Exclusion Fits Your Fund
3(c)(1) caps you at 100 investors but accepts accredited money. 3(c)(7) lifts the cap and demands qualified purchasers. How to choose, and why it is hard to switch.
GP Commitment: How Much Skin in the Game LPs Expect
What LPs expect a GP to put into their own fund, why cash beats a fee waiver, how the commitment is funded over the call schedule, and what first-timers get wrong.
Capital Calls and Distributions: How Money Moves Through a Fund
How committed capital becomes contributed capital: notice periods, LP default remedies, recycling provisions, and how distributions reach investors.
Side Letters and MFN: What LPs Negotiate Outside the LPA
What LPs ask for in side letters, how most-favored-nation clauses work and what they cost you, disclosure obligations, and how to keep a first fund manageable.