How Do You Start a Private Equity Firm From Scratch?

Описание: In this episode, Devin and Jim rewind to 2014 — and a $12 bottle of Cabernet at the Macaroni Grill — where they hatched the plan to leave their firm and build a new private equity firm from nothing.

This is the insider's guide they wish they'd had.

They cover:
04:55 - How to choose (and not choose) a good name.
09:48 - How long can you fund the burn
13:00 - Why are you so special? The one question every aspiring fund manager must answer honestly.
33:36 - The different structures to choose when setting up your firm

From the hallway of a borrowed office to their first fund closed, this is how it actually got done.

00:00 Intro
01:42 The 2014 Macaroni Grill Epiphany
03:47 Taking the Leap: Quitting to Launch Our Firm
04:55 Naming Your Firm: The Rules & Origin of Parker Gale
09:48 Funding the Burn: Managing Startup Costs & Risk
13:00 Defining Your Edge: Special Skills Investors Want
18:22 What Is Your Firm's Focus & Model?
22:56 Private Equity Business Models Explained
27:26 Traditional Fund vs. Independent Sponsor vs. Holdco
33:36 Getting Real on Fund Structure and The Pressure to Deploy Capital
38:38 Building Your Team: The Importance of Complementary Skills
41:31 Optimizing for Your Chosen Game and Market
47:40 Traditional Fund: Pros, Cons, and How It Works
56:02 Teamwork, Track Records, and Knowing What You Need
01:00:00 Why Small is a Strategy: Focusing on Founder-Owned Software
01:03:18 Opening the Black Box: Branding and Transparency in PE
01:07:32 The Underdog Ethos and Building Culture
01:12:10 Wrapping Up: Lessons, Advice, and Invitation to Connect

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📋ABOUT US📋
We're your friends at ParkerGale Capital, a team that's invested a billion dollars buying and building founder-owned B2B software companies. We're a mix of investors and operators who work shoulder-to-shoulder with our management teams. We like to say we do private equity with you, not to you.

We started the FunCast 12 years, 300+ episodes, and two million downloads ago to share what we’ve learned along the way. It’s the field guide we hoped existed when we were starting out. So we made our own. We hope you like it.