Marcum LLP
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Overview
Project Services
Domestic Hedge Fund Start-Up
Emerging Manager Program
Private Equity Fund Start-Up

Overview
Tax & Business
Assurance
Advisory
Alternative Investments
Real Estate

Private Equity Fund Start-Up Checklist


General Procedures
  • Clarify your investment strategy and your unique edge
  • Develop a business plan, including cash flow projections and a timetable for execution
  • Select external consultants: attorney, independent accountant and industry consultants
  • Prepare Executive Summary and basic Term Sheet
  • Select a name for the operating entities (general partner/managing member/investment manager) and the fund
  • Select members of management team (Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Compliance Officer, etc.) including outsourcing services
  • Set-up shop: banking relationships, office space, business equipment, staffing, IT/website, etc.
  • Structure compensation, profit sharing, and retirement plans
  • Consider disaster recovery plans
  • Consider forming an Advisory Board
  • Purchase adequate business, life and health insurance
Preparatory Steps
  • Determine legal entity and appropriate jurisdictions
      • “Blue sky” laws
      • Potential registration
  • Specify structure and term of investment entity
  • Prepare legal documents
      • Private Placement Memorandum, Limited Partnership Agreement, Articles of Association, Operating Agreement
        • Capital commitments (and consequences for default)
        • Capital Calls
        • Distributions
      • Subscription Agreement and Partnership Questionnaire
  • Consider provisions for
      • Book and tax allocations
      • Management fee
      • Carried interest
      • Hurdles/preferred returns
      • Claw-back clauses (escrow or guaranty provisions)
  • Establish compliance, risk and valuation guidelines
Document Review
  • Offering Memorandum
  • Subscription Agreement
  • Partnership Agreement
  • Custody Agreement
  • Compliance, Risk and Valuation Guidelines and Manuals
  • Due Diligence Questionnaire
  • Marketing and Website Materials
Private Investment Forum

Contacts
Melville, NY
631.414.4230
Contacts
Irvine, CA
949.236.5618
Irvine, CA
949.236.5670
San Francisco, CA
949.236.5622
Contacts
West Palm Beach, FL
561.653.7330
West Palm Beach, FL
561.653.7310
Contacts
Boston, MA
617.807.5150
Boston, MA
617.807.5060
Contacts
Melville, NY
631.414.4520
Melville, NY
631.414.4414
New York City, NY
212.485.5760
Melville, NY
631.414.4256
New York City, NY
212.485.5510
Contacts
Philadelphia, PA
484.270.2550

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