I am curious how do you keep track of all, how much profit is going to each LP. If you have 10k in fund and 2 investors, and you buy $2000 of Apple shares, okay, each get $1000 worth of shares or 10% of portfolio. But a month later you get 2 new investors with new 10k and you have now $8k leftover from first 2 shares plus 10k new, total 18k. now you go and buy 1800 shares of apple again and that is divided into portfolio stake again. I already lost track who gets how much if a year after we sell all Apple shares for 20% profit. not to mention waterfall percentage, geez! Is there a software that does that? What are u using for calculations?
Yes, it can get a little confusing especially inside of a hedge/trading fund. There are softwares that keep track of it. Typically you'll have dates (like every quarter) that investors can move in and out. So you only have to calculate it 4 times a year.
Great info and I appreciate the break down but I don’t think the people watching your videos on UA-cam have millions of dollars to invest. What do you recommend for someone who has a fund with say $100k or less?
You would be surprised! A lot of the individuals in our program found us via UA-cam... but It's all about getting started with the first deal and leveraging other peoples money
@@lincolnarchibald9042 this fof structure with the 2/20 formula is thought for hedge funds? Because if I have a fof for index funds and investment funds like fidelity or vanguard they charge under 1%.
Im into real estate.. Would you recommend opening a FOF if we have less than $1m and invest with other syndicators? Or open a real estate fund where we are the ones operating the deal hands on? Or is it up to the individual in your perspective?
@bridgerpennington I'm confused. If the VC firm is taking 2/20 (or no fee but they have a 30% carry) What is the typical FoF taking? an additional 10% carry? please explain, thanks!
So much BS. Who is going to give millions? You need lawyers, accountants, fiance guys. You have to deal with withdrawals unbelievable amount of compliance regulation. Need to do auditing. Tons of shit and tons of risk.
I am curious how do you keep track of all, how much profit is going to each LP. If you have 10k in fund and 2 investors, and you buy $2000 of Apple shares, okay, each get $1000 worth of shares or 10% of portfolio. But a month later you get 2 new investors with new 10k and you have now $8k leftover from first 2 shares plus 10k new, total 18k. now you go and buy 1800 shares of apple again and that is divided into portfolio stake again. I already lost track who gets how much if a year after we sell all Apple shares for 20% profit. not to mention waterfall percentage, geez!
Is there a software that does that? What are u using for calculations?
Yes, it can get a little confusing especially inside of a hedge/trading fund. There are softwares that keep track of it. Typically you'll have dates (like every quarter) that investors can move in and out. So you only have to calculate it 4 times a year.
There are tons of complexities. These two talking heads have no idea what they are talking about.
@@toroblanco800 I disagree. I work for a VC firm in the UK and Bridger makes a lot of sense!
Great info and I appreciate the break down but I don’t think the people watching your videos on UA-cam have millions of dollars to invest. What do you recommend for someone who has a fund with say $100k or less?
You would be surprised! A lot of the individuals in our program found us via UA-cam... but It's all about getting started with the first deal and leveraging other peoples money
@@lincolnarchibald9042 this fof structure with the 2/20 formula is thought for hedge funds? Because if I have a fof for index funds and investment funds like fidelity or vanguard they charge under 1%.
Does it make it harder to raise capital if you’re spreading into different assets?
Im into real estate.. Would you recommend opening a FOF if we have less than $1m and invest with other syndicators? Or open a real estate fund where we are the ones operating the deal hands on? Or is it up to the individual in your perspective?
Inaccurate. No FOF chargest 2+20%. They typically charge 2+5%, while it is a second layer of fees, it's no where near 4/40 all in.
@bridgerpennington I'm confused. If the VC firm is taking 2/20 (or no fee but they have a 30% carry) What is the typical FoF taking? an additional 10% carry? please explain, thanks!
Appreciate the explanation - thanks!
Great video ✌🏻That was very helpful to understand the structure
No link for the video that's mentioned in the beginning, could you link me please
Just type private equity structure, you will find it
sbi is launching new fof in march 1st week
Can you please explain co-invests and blockers as opposed to funds in private equity
I need help coz here pinas lockdown again
WI wonder what Bridger saidAfter grabbing TVs that he had to edit it and do it again. 🤣🤣
What are the best books to learn everything about funds?
Have you got the answer...from any other sources ??
I was wondering this as well, if anyone has great books on funds they recommend, please share
Do you need a license to charge the management fee?
Yes
Personally I'd never invest in anything like this, to much overhead for a manager that doesn't know or trust what they are doing.
Such such pricks make this look so nice but does anyone know what happens behind the scenes? How do they raise the extra 25 he’s referring to? Smh
So much BS. Who is going to give millions? You need lawyers, accountants, fiance guys. You have to deal with withdrawals unbelievable amount of compliance regulation. Need to do auditing. Tons of shit and tons of risk.
Lot of words coming from a guy who's never run his own fund.
You're obviously not a fund manager or have ever been one. 😂😂