Creating an Executive Summary for a Fund

Creating an Executive Summary for a Fund

June 2, 2020 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

In raising a fund you’ll need an executive summary which should include the following:

Fund Objectives, (Legal) Structure, Fund Specifics, Investment Strategy, Investment Criteria, Investment Process Overview, Management Team and Disclaimers.

Fund Objective — purpose of the fund and how it will be deployed.

Legal Structure — is it a fund, a syndicate, a pledge fund or some other structure?

Fund Specifics — most funds are based on a ten-year window.  

Distribution Strategy — most funds provide a recycle provision that lets GPs reinvest profits back into the fund. Other funds require a hurdle rate before GPs can share in the profits. This means the investors get their principal investment back before the GP takes any carry.

Limited Partner Units — private funds are limited to a maximum of ninety-nine accredited investors in the fund.

Fee Structure — most funds use the two percent management fee and a twenty percent carry.

Compensation Structure — this determines when and how the GPs receive their compensation.

Initial Deposit — funds vary in how much of the funds are required from investors upfront. 

Investment Strategy — outlines the investment thesis.

Management Team — the resumes of the general partners. 

Finally, there are disclaimers to include.


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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.