Private Equity FunCast How do you start a private equity firm from scratch?
4 snips
Mar 4, 2026 They rewind to a dinner that sparked leaving steady jobs to create a new private equity firm. They map fundraising timelines, naming and branding rules, and lean startup choices to fund a burn. They compare firm structures like independent sponsor, holdco, and traditional funds. They discuss targeting founder-owned B2B software, deal sizing, team skillsets, and building culture while scaling relationships.
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Make Your Edge The Fund's Story
- To raise a fund you must articulate a unique edge: operating experience, sourcing/network, track record, or market insight.
- Align that edge to the fund strategy so LPs can see repeatability and why they should back you.
Match Deal Size To How Hands-On You Are
- Choose company size and involvement that match your strengths; don't switch strategies mid-raise to chase deals.
- If you're hands-on, target founder-run smaller companies needing new CEOs; if hands-off, target larger firms with existing C-suites.
The Five Year Deployment Pressure
- Traditional funds create a deployment clock: you typically have five years to invest committed capital, which pressures sourcing and can cause strategy drift.
- That timeline favors teams who can scale deal-sourcing and close quickly.