What you are explaining is a general private fund rule . Primarily there are three ways you can structure your private fund- Hedge fund, PE fund and VC fund and they all have different regulations. I think there is a special exemption for VC fund advisers. They may not have a Series 65 license and can still charge a 2% management fee. Exemptions for funds are different than exemptions for advisers. Also federal exemption does not mean that you are exempt from the state regulations also. I am not saying what Bridger is explaining is wrong. It's good as a general rule for private funds but I would always suggest to seek legal advise from a corporate securities lawyer instead of watching a video and starting a fund because the last thing you want to do in your life is getting into trouble with SEC or IRS in US. Here is a link for more information: www.strictlybusinesslawblog.com/2019/01/31/registration-for-private-funds/
@@bridger_pennington So how do you show them that you arent a hustler trying to take their money and run? cause most want to see some Credentials instead of your word, cause in reality you are a Stranger to them...
There is something I want to point out. You do need your clients to be qualified purchasers if you want to charge the performance fees. You need a RIA even if you don't charge management fees because with performance fees you are getting compensated.. " "investment adviser" as any person or firm that: (1) for compensation; (2) is engaged in the business of; (3) providing advice, making recommendations, issuing reports, or furnishing analyses on securities, either directly or through publications. A person or firm must satisfy all three elements to be regulated under the Advisers Act." www.sec.gov/divisions/investment/iaregulation/memoia.htm
I don't think this is correct. And it seems to me someone that advises one private equity firm is exempt under 203b. But perhaps I am not fully understanding the language. And I didn't see anything in that link about qualified purchasers. And I've definitely never heard that claim before.
I agree that this is unclear. Like many of these statutes, the section quoted by Rodick sets forth the definition of an "investment adviser". Then, some other portions of the statute, and also the related regulations, carve out exceptions and exemptions. This is like the Securities Act itself, which defines a "security" and then sets up exceptions to the definition, on the one hand, and then exemptions from the registration requirement, etc., on the other. But, as to this question, the SEC's materials emphasize that "compensation" is defined broadly, and the "carried interest" would almost certainly fall under the SEC's understanding of what is "compensation." So it is not at all clear how eliminating the management fee, without more, avoids classification as an investment adviser. Clarification of this point would really help.
Great video. I agree with J F. LOL. P.S. Please find a video layout to keep the whiteboard and your body shot constant. Swapping full screen between them hurts!
This seems like a grey area in Utah. Everything im researching says you need a 65, even to charge performance fees to qualified clients. What other information do you have? Utah seems really strict.
what is the pre-requisite education to get license "Series 65". I mean do we must have degree in order to do series 65 exam. what is the minimum requirement.
Hi Bridger - love the content. Do you know if the rules are the same in the UK with the Financial Conduct Authority (FCA)? Or can you point me in the right direction?
You gotta understand that most investors these days do not wish to go with the 2/20 fee structure; as it seems that some funds aren’t performing so there’s no need for a 2% management fee;
what do you mean by starting your own fund? i'm looking to start my own financial business which is what led me to your video, but I'd like to know what you mean by starting your own fund. thank you!
Not if you do a syndication, thats the only way I've seen it easy and safe to get non accredited investors in. You can learn more about it here ua-cam.com/video/ounSrSkPJQY/v-deo.html
Please I have a question, in creating a hedge fund , what operational system is needed to keep the fund running , what labour or people can one employ. And are the salaries of the workers fixed or based on a percentage.
As an investment advisor you can charge anyone a management fee even retail traders. You can only charge a performance fee to qualified investors. You had that backwards in your video.
You're dad didn't just raise you, he's raising us through you too lol keep it up. Thanks brother.
What you are explaining is a general private fund rule . Primarily there are three ways you can structure your private fund- Hedge fund, PE fund and VC fund and they all have different regulations. I think there is a special exemption for VC fund advisers. They may not have a Series 65 license and can still charge a 2% management fee. Exemptions for funds are different than exemptions for advisers. Also federal exemption does not mean that you are exempt from the state regulations also. I am not saying what Bridger is explaining is wrong. It's good as a general rule for private funds but I would always suggest to seek legal advise from a corporate securities lawyer instead of watching a video and starting a fund because the last thing you want to do in your life is getting into trouble with SEC or IRS in US. Here is a link for more information: www.strictlybusinesslawblog.com/2019/01/31/registration-for-private-funds/
I just can't believe this video doesn't have more views.
Really good content!
It's good that the knowledge is being contained within relatively lesser minds
You’re content is really good, keep pushing and your channel will blow up!!!!
chiemezue atubi I appreciate it my man!
@@bridger_pennington So how do you show them that you arent a hustler trying to take their money and run? cause most want to see some Credentials instead of your word, cause in reality you are a Stranger to them...
agree!
m sway How do you know what most want to see? How many funds have you started? What assets under management do you have from qualified investors?
There is something I want to point out. You do need your clients to be qualified purchasers if you want to charge the performance fees.
You need a RIA even if you don't charge management fees because with performance fees you are getting compensated..
" "investment adviser" as any person or firm that: (1) for compensation; (2) is engaged in the business of; (3) providing advice, making recommendations, issuing reports, or furnishing analyses on securities, either directly or through publications. A person or firm must satisfy all three elements to be regulated under the Advisers Act."
www.sec.gov/divisions/investment/iaregulation/memoia.htm
I don't think this is correct. And it seems to me someone that advises one private equity firm is exempt under 203b.
But perhaps I am not fully understanding the language.
And I didn't see anything in that link about qualified purchasers. And I've definitely never heard that claim before.
I agree that this is unclear. Like many of these statutes, the section quoted by Rodick sets forth the definition of an "investment adviser". Then, some other portions of the statute, and also the related regulations, carve out exceptions and exemptions. This is like the Securities Act itself, which defines a "security" and then sets up exceptions to the definition, on the one hand, and then exemptions from the registration requirement, etc., on the other. But, as to this question, the SEC's materials emphasize that "compensation" is defined broadly, and the "carried interest" would almost certainly fall under the SEC's understanding of what is "compensation." So it is not at all clear how eliminating the management fee, without more, avoids classification as an investment adviser. Clarification of this point would really help.
Great video. I agree with J F. LOL.
P.S. Please find a video layout to keep the whiteboard and your body shot constant. Swapping full screen between them hurts!
This seems like a grey area in Utah. Everything im researching says you need a 65, even to charge performance fees to qualified clients. What other information do you have? Utah seems really strict.
Right!? Did you ever get that figured out?
what is the pre-requisite education to get license "Series 65". I mean do we must have degree in order to do series 65 exam. what is the minimum requirement.
Can you do a video for Canada? Thanks for the amazing value by the way!
High quality content! Thank you for putting this out
Hi Bridger - love the content. Do you know if the rules are the same in the UK with the Financial Conduct Authority (FCA)? Or can you point me in the right direction?
You gotta understand that most investors these days do not wish to go with the 2/20 fee structure; as it seems that some funds aren’t performing so there’s no need for a 2% management fee;
what do you mean by starting your own fund? i'm looking to start my own financial business which is what led me to your video, but I'd like to know what you mean by starting your own fund. thank you!
Great video. Short and to the point, but you explained it very well. Do you still have to have any exemptions?
Can you do a Reg A fund to have non accredited investors or is that a bad idea?
You're allowed 35 non accredited investors.
This was helpful, thank you.
Bridger, currently working on opening a HF and was wondering how do we accept 401K's, and such?
That's a great question that unfortunately I will not be able to accurately answer via comment. I'll put it on my vids to make!
Great video
Incredible video thank you
No problem👊
Do you NEED to have accredited investors to invest in a small private equity fund with no RIA thats just starting off?
Not if you do a syndication, thats the only way I've seen it easy and safe to get non accredited investors in. You can learn more about it here ua-cam.com/video/ounSrSkPJQY/v-deo.html
@@bridger_pennington really? non-accredited investors can join syndications?
Please I have a question, in creating a hedge fund , what operational system is needed to keep the fund running , what labour or people can one employ.
And are the salaries of the workers fixed or based on a percentage.
Visit: fundlaunch.com. You’ll be able to learn more !
It's really a wonderful idea, but for starter, how did you gain the trust of the investors? Please share your ideas? Thank you
You need to show an audited track record.
@@InvestToLive correct !!!!
Thank you
If I have a Series 65 but want to set up the fund with zero mgmt fees, since I am technically an RIA are my investors required to be “qualified”?
Man this is very good!
What about if a fund does not take outside money?
Should the general partner be an llc? Or is it not necessary?
If we have zero management fee’s, do our investors still need to be accredited?
What if my friends and family has less than 1 million net worth, can I still do this under the GP?
What if you don’t have accredited investors
Great videos
Using this strategy am I only able to take money from accredited investors or can anyone invest?
Interesting system, great information 👌🏻
Great info!
Glad you enjoyed!
How can you get investors that make less than a 100k a year?
2% of a billion
What degree is good for this job
If I don’t charge a management fee, but just a performance based fee, do I still need accredited investors only?
Hey bro please how can I contact you?
As an investment advisor you can charge anyone a management fee even retail traders. You can only charge a performance fee to qualified investors. You had that backwards in your video.
is this legal in california?
Yes, but make sure to look up your individual state's compliance requirements.
Can we start with a fund of 50,000$ from other business owners just to get our feet wet?
thank you for your information as well
Absolutely! My first fund was only $46,000 dollars. If you can find investors, you can create a fund 👊
@@bridger_pennington appreciate your time !💪
@@minutescouldsaveyoupercentormo Appreciate yours as well! Hope the content continues to help you on your fund joruney!
❤🎉