How To Start A Private Equity Fund From Scratch

[@frankwilliams5766]

"regular people like you and me" that have a father and brother running hundred or billion dollar funds. So simple!

[@DavidRamseyIII]

What is the point of this ridiculous video? If you are trying to learn how to start a private equity fund off a KZbin video you are certainly a loser who has no chance of doing so

[@jeeeeeeeee2977]

@@DavidRamseyIII lol yup. This is harsh. But realistic. I'd bet you're the guy that challenges management addbacks 😂

[@kirillv8162]

This guy is ridiculous

[@iancushing1205]

@@DavidRamseyIII couldn’t disagree more😂 quite the negative perspective. Many people don’t know this sort of information and would be interested in starting a similar fund. You’re the loser who has no chance of doing so..

[@mnava4290]

@@DavidRamseyIII : You think the people who do it, wake up one day with all the information coming from their dreams? KZbin is a new medium of spreading knowledge. I have an MBA and my top league university did not teach this. So thanks to Bridger.

[@littlebopeep3377]

Sorry to burst everyone's bubble - but I know this space intimately, and unless you've got some rich friends or relatives, none of what this guy says in the is going to come to fruition. There is a laundry list of why it is challenging to get funding, regardless of how good or how much you believe in the deal. He also needs to stop using the word guarantee, whether it is an example or not. Offering any sort of guarantee and not coming through will land you in prison.

[@philipcaballero8834]

@Over There Disagree, it just takes more effort. Sure if you have the connections and privilege there is already trust there, all he is talking about is building trust nothing more when you boil it down.

[@brandony8691]

This is true. I've worked in the PE FoF space (LPs) and in investment banking (sponsors/buyside advisory) and I can tell you that it is incredibly difficult to land a job in the space, let alone start a PE fund from scratch. In today's environment, you absolutely must have an edge in order to raise sufficient LP capital to sustain your PE management company (at a bare minimum this would mean raising at least $50m, but realistically may be much higher depending on the size of your investment, legal, and back office teams). Unless you have a track record of operating success in a certain industry (e.g., healthcare, industrials, etc.) or an obvious source of proprietary deal flow, LPs will fail to take you seriously and won't invest in your fund. Furthermore, the average person--with no deal experience, fundraising experience, or valuation/financial analysis experience--would not come close to competing in terms of fundraising with the myriad of other people in the industry who already have those experience boxes checked (and even those people find fundraising EXTREMELY challenging).

[@LDacic]

It is quite interesting that he starts the video by saying his father and brother have experience starting funds then proceeds to talk about pitching from the angle of a regular guy.

[@sicoticoz5160]

@@LDacic I found that interesting as well.

[@jhands20]

Did this guy really say org costs should be $30k lol

[@flywithAC2312]

Natural for a lot of haters or doubters to come on here & judge some of the words that may have been thrown around in the video. 1) It isn't easy to create a 29 minute video explaining what PE is & how you can start a PE fund because PE funds are different depending on where you go, the jurisdiction/domicile of the fund, investor availability etc. 2) I have friends who graduated off the same MBA as me & went on to start PE funds in emerging markets - setup costs are low, they had a focus (ESG, Real Estate etc) and they had a list of investors they could reach out to thanks to networking (mainly) - they didn't have 60k or 100k to drop on the creation of a PE fund, it just happened because hard work put them where luck found them. 3) The underlying assumption in a lot of the comments below is that Bridger is speaking about PE funds in developed markets in specific which is a gross misconception because the PE market is only really saturated in your so called 1st world countries and/or developed markets. Set up a fund out of the Middle East, APAC or North Africa - you will get good coverage & have options.

[@MarcelPhilips]

Great video. We all strive for financial independence and better life. It’s not difficult in achieving this through the right investment, living frugally, and budgeting. I’m glad I learned early in life to work hard for financial freedom

[@harrisonjamie794]

In my opinion, venturing into a good investment is not just a strategy for generating passive income but a profitable saving method for future expenses. Those who fail to make the right decisions early in life end up regretting it. Nevertheless, investing can be difficult and risky doing it solely, For this reason, I advise seeking help from professionals(financial advisors). It’s not just watching videos and reading investment books the challenge is using them well.

[@MarcelPhilips]

@@harrisonjamie794 sincerely, I’m truly inspired by your words. I’m very interested in investing and I have got a good sum of money which I’m ready to put in with the right information. My biggest fear is losing my money on the wrong investment. For this reason, I’m willing to listen to your suggestions and ideas on how to invest wisely.

[@harrisonjamie794]

@@MarcelPhilips As an OAP with a lot of experience, I firmly believe that the success of any investment depends on having the right information, regardless of what others say, do whatever you set your mind to. Warren Buffer always says "be greedy when others are fearful and be fearful when others are greedy". This is certainly the trick to succeeding even when others fail. I made $100,000 working with KRISTIN GAIL CUNNINGHAM a licensed financial adviser . It’s been a promising experience so far with her.

[@MarcelPhilips]

@@harrisonjamie794 Please, how do I connect with your financial planner?

[@harrisonjamie794]

@@MarcelPhilips quickly do a web check where you can connect with her, and do your research with her full name mentioned

[@KoonceLyfe]

None of my business classes discussed the reality of funding, growing, & scaling. This is solid info

[@blakewood4756]

The shoe had my attention the whole time

[@ytlover7924]

It lools like its floating in space,distracting...

[@danielmills3337]

I didn't see it until I read your comment ;)

[@sicoticoz5160]

I didn't even notice it until I read your comment.

[@mulemule]

(You'll have a better shot at wealth investing in rare sneakers than believing this vid's advice.)

[@sanansa4567]

LOL. Thanks for the laughs

[@billnolan5375]

Not all income investments are created equally. I've allocated my capital in a safe and sustainable way but still leave room for excitement for individual stocks, cryptos and new exciting opportunities!

[@noelstout3056]

@Joe Robert. I firmly believe everyone striving for financial independence should own both stocks and real estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide. At least with stocks, when the market is plunging, you can sell, albeit at a loss. Lots of people couldn't sell their real estate, couldn't afford to sell in 2007-2011.

[@CapitalCash]

WHAT A TOTAL CLUELESS JOKE

[@davidhudson3001]

Private equity (PE) refers to capital investment made into companies that are not publicly traded.

[@dr.ervingalen1777]

Leveraged buyouts (LBOs) and venture capital (VC) investments are two key PE investment sub-fields

[@jewellwalker9808]

Most PE firms are open to accredited investors or those who are deemed high-net-worth, and successful PE managers can earn millions of dollars a year.

[@guangfang9961]

Who would you endorse @Jewell

[@jewellwalker9808]

Reach out to Tamara Diane Hagan. Look her up on the web.

[@guangfang9961]

Thank you. writing to her website right away.

[@hurbit123]

forgot to mention: your videos are great, absolutely true and authentic. I am a mature whitebeard and am so happy to see young strong entrepreneurs.

[@tporcheron]

#1 Bring on management and/or board members with proven records. Use their track record before you have your own.

[@CliveBirse]

I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@ThomasChai05]

I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market

[@mikegarvey17]

Yeah, financial advisors could make a lot of difference, particularly in a market such as this. Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look. I have been using an FA since 2022, and I return at least $121k ROI, and this does not include capital gain.

[@mariaguerrero08]

@@mikegarvey17This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation.

[@mariaguerrero08]

@@mikegarvey17Could you possibly recommend a CFA you've consulted with?

[@mikegarvey17]

My CFA “ Izella Annette Anderson “, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..!

[@anmolnayak9232]

Now I gotta find people in the three distinct circles and get going with the fund launch formula. You are amazing Bridger. Much appreciated

[@tristonmclaughlin3687]

… so what happens after the three who actually run to the operation realize your better off with mop in your hand? If you’re gonna lead your skills need to exceed. This is what I got from the video anyway my own skills aren’t up to par. Investment history of just a few years, no management experience and all of my information of fund structures are from KZbin University, and I’m one of the wealthiest of my very poor peers. So extremely limited clientele as well. Personally my plan of attack after this video is to continue to invest. Study harder on my financial literacy, and try to reconnect with some old sales friends once I have a deal to pitch them. (Really just committed to help process and reflect for myself not trying tell you how to conduct your business)

[@gregoryzankowsky3336]

This guy screams "finance bro". I love it

[@mohamedyossry3797]

I watched this video 3months ago and right now i am typing to you from my company Thnx bro …really life changing ❤️❤️❤️

[@toms6147]

This is so weird, I was just thinking to myself today “Hm, I wonder if there’s a such thing as a hedge fund for businesses instead of individuals?” And landed on this channel after an ad popped up for exactly that. And I live in Billings, Montana, the exact place he used for his example! He’s not just a fund manager he’s a mind reader!!!! 🙆🏻‍♂️

[@bridger_pennington]

You know what they say, everything happens for a reason😉

[@markdin2988]

@@bridger_pennington I am following everything you do. I'm currently 18 years old, trying to get a double bachelors degree with Finance and Computer Science as my majors, nearly done with the finance degree atm. These videos have literally breathed fresh life into me. I want to do more research on the topic of creating a fund like this once I get a chance. I'm currently trying to gather capital for it with small businesses I'm trying to help build up locally. Thanks for your videos man, and good luck with your future endeavors.

[@jeeeeeeeee2977]

@@markdin2988 dude. My fund's partners have 30+ years of experience, invested 10s of millions of their own capital to start it, and spent a year raising a fund after several years of developing their initially acquired companies. You would be competing with them. If you still feel confident in your idea, go for it. But if you do proceed, it's likely that you're going to end up relying on the comp sci part of your degree for employment. I would HIGHLY advise against it. I would also advise you to never click on one of these videos again. This advise is NUTS.

[@user-wq3qz2si9j]

Wow, I thought he was going to tell us to click a link. This is the greatest video ever. Amazing. Please keep up the great work, you’re changing the world

[@bridger_pennington]

Thank you! I really appreciate the support👊

[@gamercod3520]

@@bridger_pennington Yes I also appreciate the good content. Thanks for it! You gained a new follower!

[@jeeeeeeeee2977]

🤦‍♂️

[@andrewb3928]

This is extremely informative, and is high-level thinking. This is the type of knowledge that you get from actually working and dealing with these types of models. I know a lot of extremely wealthy people that all run private equity and V.C firms but I didn't necessarily know the structure involved. To everyone watching: this guy is the real deal and knows what he is talking about, this isn't googled information.

[@bridger_pennington]

Thank you Andrew, I really appreciate it👊

[@shounakchatterjee1823]

@@bridger_pennington Bridger i have already commented on ur recently made 1 or 2 videos to cover a video on the topic that how a new PE firm will launch pe fund jointly with investors. Please make a video this as fast as soon as possible, it's really very important for me. THANK YOU👍☺

[@jacquelinex9489]

Can’t stop looking at your shoe at the background

[@mennohoekstra2935]

same here. If the shoe fits

[@prestontucker1687]

running around in circles.

[@marcusaurelius7438]

It is a bit gaudy.

[@VinodSharma-zr5lp]

hi bridger, thanks for the ton of information in a nutshell. most important in this process is the start. and you have very intelligently solved the hindering questions which generally sicken the mind of a beginner. this is one of the best videos I have ever seen.

[@yakov6496]

You're a really good teacher Bridger. Well done

[@nicolampe]

This is literally the BEST video I watched in 2022!

[@PrincessDie187]

This is the best video I've ever seen.

[@bridger_pennington]

Thank you!

[@Rene19891]

A very positive surprise! Didn't expect this level of content on youtube ;)

[@tlhogid663]

This is a great video. I have managed funds in large (listed) firms for 13 years and would like to start an unlisted fund business. Thanks for your informative material!

[@joelstatosky1817]

Cool thing about funds is if you are making money, that means everyone else is making money and that means everyone is happy.

[@TheBorneomann]

unfortunately the universe can't make EVERYONE happy

[@joelstatosky1817]

@@TheBorneomann Yeah, it is what it is lol. When GME was going crazy I can tell you no one who was in a fund was having a nice day lol.

[@jahimuddin2306]

@@joelstatosky1817, The Hedge Funds were having a bad day. Private Equity did not care.

[@DavidShantzwildoutwest]

‘“Boom, here we go!” hilarious high energy intro. I get the feeling that the SV tech start-up ethos of irrepressible exuberance may have jumped species.

[@fabianblixt9080]

Real and no clickbait. +1 for the shoe

[@aroaris843]

Greatest pe video I have seen by far!!

[@bridger_pennington]

Thank you!

[@kristiyanstoychev7759]

Thanks, working in PE in London right now and it is always great to hear other perspectives. Going to start my fund within 5 years

[@christianpenchev2689]

Може ли да те питам как влезе в индустрията? Учеше в Англия ли?

[@ShabnamKhan-gg4xf]

Hey! I believe we're very like-minded and that'll be incredible if we connect, Drop your linkedin, Let's connect!

[@The_Unintelligent_Speculator]

How’s the fund going?

[@ashutoshmishrarolno37.clas35]

Have you started?

[@RRlifer85]

Bridger this was an awesome share! I just subbed your channel. Explanations were clear and easy to understand.

[@shingaimhendurwa4031]

Interesting . I can definitely apply it to the African Market

[@suemoganedi9354]

I love ❤️ your channel, always get good information, not salesy, no click bait, just pure value. Thank you 😊 🙏.

[@bridger_pennington]

I appreciate that!

[@nandiphanonkwelo9732]

Really enjoyed how you simplified this Bridger. Highly appreciate it and wish had you as a mentor in this field

[@AC-fp4vz]

Dude I love your videos, do you think you can do one about LBO's at bigger and smaller scales, I think it would add a lot of value to most of us. thanks in advance man keep it up!!

[@bridger_pennington]

I'll add that to my list! Keep an eye out for future videos👀

[@blackharvardgroup]

Great Request.

[@vinhnguyen3199]

This is really practical and informative. Thank you so much. Keep sharing please

[@nirvab.1667]

This video was a game changer for me. Thank you.

[@harveyfung5744]

good stuff, keeping me motivated, THANKS!

[@Scott-kc5fg]

Who does the tracking of commitments, contributed capital, calling capital when a new deal is funded, subsequent closings and equalization, and everything else?

[@deletingthistrash2209]

A gp witching your company

[@REIMAVENS]

Amazing free game you gave out in this video. Well done!

[@documenting_mahendra]

Amazing content, thank you! You got yourself a new subscriber!

[@lawipac]

Thank you for such a great video, it's inspiring, PS: the rotating shoe is a great distraction and symbol to say "I'am unique".

[@eulere.ortega7180]

Please make a detailed session for Hedge Funds. It would be nice to have some examples if possible. Saludos.

[@bridger_pennington]

We've got a few videos on hedge funds already if you want to check those out! But we will definitely be releasing more in the future🔥

[@alpinebreed1774]

This was awesome. Like seriously.

[@soldierdog1249]

This knowledge (and the whole channel) is GOLD. Thanks Bridger!

[@bridger_pennington]

No problem! Thank you for the support👊

[@privateconfidential7490]

All books talk about surrounding your self with advisors I am searching to raising funds, but I have deal 50 building real estate projects future, 2 ready to go exit 12 to 18 months and Cross borders resorts, I been asked to provide surety bonds, in finance we don't become the idiots with the pen sign away our assets, I am in New in PE, I have term sheets agreements, I run AML KYC Investment consolidations Ltd UK

[@zillehuma9393]

@@bridger_pennington someone on instagram pretending to be you and collecting investment .

[@theeholywind8538]

You nailed it ... great work brother ... stay blessed

[@ivinitmittal]

Great topic!!👊🏻💪🏻

[@rightright6582]

Great video. The best so far.

[@nitishdhaulakhandi4973]

fantastic explanation, thanks Bridger :)

[@dhruvadabke2476]

Love the content. Keep up with the insightful work!

[@bridger_pennington]

Thank you!

[@Brisius]

Wow, this is so surreal. This sounds too good to be true.

[@bridger_pennington]

It's not! It isn't reserved for the elite Ivy-Leaguers. Learn more at www.fundlaunch.com

[@eulere.ortega7180]

Great information and excellent method to convey it. Thank you very much for sharing your knowledge and experience.

[@bridger_pennington]

No problem👊 Thanks for the support!

[@preritransinge7881]

You are such a angle man 👍🏻 I really wanted this all information from very long. Thank you

[@bridger_pennington]

No problem! Thank you for the support👊

[@zillehuma9393]

@@bridger_pennington are you on instagram?

[@domingosainz3958]

Awesome content 👏 keep it up man! Love it!

[@bridger_pennington]

Thank you! Really appreciate it👊

[@sirandoost]

So informative!! My man!!!

[@bridger_pennington]

Thanks bro👊

[@TheSchulz21]

Great content and love the energy and enthusiasm.

[@muslimecompreneur]

Bridger bro! the content you put is 💎🙏🏽

[@bridger_pennington]

Amine! Thanks so much broski, appreciate the support 👊

[@zBMatt]

Literally all you need to start a pe fund is a way to lock in capital, a source of funding, and a means of investing that money into private companies / equities. For a hedge fund it's the same but you can invest in more than just private companies. For a mutual fund it's the same thing but you can't lock capital in and you can invest in more than just private companies. It's a lot more simple than a 29 minute video would have you believe. Each part comes with it's own difficulties: locking in capital requires a well written contract, a source of funding requires marketing skills, and investing requires that you have a niche that you're good at. The structure of the fund itself though isn't hard, to the point where high schoolers have done it.

[@Partytime60]

Thanks a lot man.... You save a lot of my time.....

[@almightycancercurefoundati2280]

Nice to know. We will start now

[@VinodSharma-zr5lp]

from your title it is clear you are about to start a begging fund 😉

[@mousami4184]

Thanks Bridger, loved how you have simplified the whole concept

[@TristanChicklowski]

Wow, and just thank you!

[@danielwilson8390]

Question for you. After soft pitching how much do you typically see convert into funding ?

[@lifeengine4635]

1%

[@Itsdaniel_leo]

I want to start as this as an individual with a large social media following. All business minded influencers should be doing this

[@balionvacation1124]

This is fantastic content.

[@karimghandour5998]

Very informative and the pace is perfect

[@jamesliam4348]

Making money is easier through investment, don't save your money buy assets and invest

[@alfonsoramirez268]

You are right sir

[@alfonsoramirez268]

Most people don't invest due to ignorance.

[@uendileka1162]

I've got interest in investing but afraid of doing it on my own to avoid losses from my own

[@annikaroth7161]

@@uendileka1162 that's why you need the help of a professional who trades and understands the market more to earn good income

[@annikaroth7161]

Is not all about watching videos and wasting your time on strategies, I was ignorantly doing so...not untill I gave Expert Mrs Russell a try and ever since then she has changed my story for the better

[@memepizza37]

That shoe over the background has my attention +1 like from me

[@juancmedina4272]

The problem here is that the word guaranty only apply for two things: Death and Taxes.

[@marcusgavelli3399]

This was really helpful! Will for sure send my fellow students here👍🏻

[@FatOlli]

So much valuable knowledge in this video, I was expecting the run of the mill "buy my course" type finance video. But realized a few minutes in that I should grab the pen and paper and start writing some of this down.

[@rainshii5045]

no..this is a "buy my course video" this guy is a pure fraud

[@snorttroll4379]

@@rainshii5045 The colours give it away. and he looks light weight. but who knows. I have not done my due diligence'

[@pablomorales748]

Thanks for putting an effort to this, is valuable.

[@amorosogombe9650]

Thank you. That was awesome.👍🏿👏🏿

[@chamonixvip6706]

THANK YOU!🙏🏻. Amazing info

[@philipcaballero8834]

Hi Bridger, this is great content.

[@robertovalle655]

I have an MBA degree with a concentration in Finance, I was an investment fund manager for the University 's fund and we NEVER ever heard of all this awesome info you're sharing. They don't teach you this in business school. Thanks for sharing!!

[@desertfalcon2786]

They do. You just went to a shitty school

[@muratt1163]

Don't you have libraries and people around the campus?

[@AnaSofiaLoves]

great information thank you!

[@KMinor4]

Bridger I just found your channel. I truly appreciate all the information you give. Thank you! I do have a few question: 1. How do you decide on the "Pref" percentage?

[@rizkymumtaza]

Good ol' negotiation I presume

[@deepikaatkinson4111]

I know that I need a team..you just made more clear.. Thanks again.

[@ResourcePrime]

I'm new to this. Loving how much detail you provide. Thanks

[@bridger_pennington]

You are so welcome!🙏

[@13552414]

Great, thanks for your generous education

[@alexanderfiorentino8885]

Such great value! really appreciated that!

[@romanoz_ua]

Wow! This is solid content

[@martinescobar4415]

Thanks for the inspiring content! Please, any comments on how to search for deals in PE space giving that there is no public information?

[@mattbontrager]

@bridger pennington what is the rate of return calculated on, net cash flow into total LP investment plus debt? Or...? Thanks for the awesome videos man!

[@marcoschuurman4667]

Hate to be THAT Wall Street guy, but what's described in the launch formula is a pledge fund/independent sponsor structure. Nothing wrong with that at all but it does have its limitations. Works really well for acquisition where the lead source is a business broker or a brokerage website but starts to have challenges when handling deals where there's a formal process being run by an IB. It's easier to negotiate LOI exclusivity with a target who is not represented by an IB - a longer exclusivity would allow you to iron out kinks while allowing you to keep leverage. Nothing wrong overall with this sort of strategy but it does have a ceiling. Just my two cents, hope it doesn't get misinterpreted.

[@bridger_pennington]

This video is for people starting their first PE fund from scratch, at that point you aren't dealing with any institutions or IB peeps, you're trying to get your fund launched! Usually by fund 3 for most managers they then try to institutionalize their offering and your 100% right

[@robsamoiloff5303]

Bridger hi, thank you for excellent content you putting out here and sharing knowledge!! Got a quick question - is it possible to launch funds without IA or RIA? Thanking you in advance.

[@kelvinwood492]

Thanks good information you are on track You and pavil Conrad are really helping beginners stand to their feet you teach pavil helps beginners master the market and also he profit on their behalf I am among his student nice an it have Been grate .keep on making fire videos . Yeah

[@ronnie8272]

Keep these coming Bridger! Pure and Gold!

[@bridger_pennington]

Thank you!

[@raulcre2015]

Wow! I'm getting motivated!

[@lawrencepennell4040]

I love the video, terrific information. You mentioned an investment advisor as a part of the fund. As an investment advisor, you or they are required to maintain the series 7 and 63 licenses, right? Also, as you develop the fund, and this be segmented into a PE fund and a VC fund?

[@_Seyah_2.0]

I think you might need a series 22... not completely sure but series 22 is definitely for DPPs.

[@simonenorman8331]

I don’t know why this information showed up on. Feed. But I didn’t kno having it would cause so much commotion

[@gclpml]

Love your video. Have a question about the three circles, the expert investor, the fund manager, and the money raise. So which is the typical share split between these three partners?

[@davidnyamubi8653]

Great Content Man 🔥

[@FloydTaylor]

Find Deal. Frame Deal. Pitch Deal. Get Feedback on Deal. ReFrame Deal. Get Legal Docs for Fund.

[@lawrencewang5429]

Very good beginner intro. Good video

[@cupcakesansfrontier]

Is there a fast and loose rule regarding when to re-engage with investors you contacted about soft raising? 3 months? 6 months? Would it seem like a train wreck to re-approach in a year or is that too long? I am super curious about this.

[@hughmjowen]

Ask them. Always set up your next step/call with each call

[@jonahbaka6223]

That was sweet!

[@chmada]

Bridger...how do i get an introduction with VC?...I would like to tell you what I have going on then get your opinion.

[@biyoroolivierzouzou2834]

Congrats Bridger.

[@satisfyingpets60]

Nice content❤️