We get the same phone call every week from people just like you: “I’ve got my investment strategy nailed down and I want to launch a fund. But I have no clue where to start.”
We get it. You didn’t get where you are by accident. You can read markets, spot opportunities, and manage risk like a pro. But suddenly, once you take the plunge to start your own fund, you’re staring at a wall of regulatory requirements wondering who you’re supposed to call first. Should it be the lawyer? The administrator? That compliance consultant your friend mentioned?
You didn’t build your track record to get buried in paperwork, but here you are, second-guessing every move because one wrong step could derail months of work.
Take a breath.
After walking hundreds of managers through this exact process, we’ve learned that launching a fund isn’t actually that complicated once someone shows you the right sequence. We’ve built the road map you’ve been asking for, complete with the hand-holding that gets you from idea to operational fund.
Your First Call Should Always Be to the Right Lawyer
Here’s where most people mess up: They start calling everyone at once. Wrong move. Very quickly, you’ll bite off more than you can chew, and run around aimlessly, with no rhyme or reason.
Step one? Your first call goes to a fund formation attorney, period. No ifs, ands, or buts. They’ll build your legal structure and offering docs, and put you in the thick of a trusted network with everyone you need to coordinate a smooth launch.
Then, as your lawyer gets the paperwork moving, start drafting a simple term sheet with your strategy, fees, and lock-up periods. You’ll need this to test investor interest and make sure your structure makes sense before you’re too far down the road.
Legal Structure: Where the Real Work Begins
Once your attorney gets to work, expect three to six months of document drafting and regulatory filing. They’ll set up your legal structure, typically a Delaware LP with an LLC general partner. However, you might need offshore feeders depending on your investor base.
The paperwork stack grows fast: limited partnership agreements, private placement memorandums, subscription docs, the works. Meanwhile, you’ll file Form D for your private offering and register as an investment advisor with either the SEC or your state, depending on your size. Consider also that trading futures means adding CPO/CTA registration with the CFTC, while going international means dealing with FCA authorization or AIFMD compliance.
Here’s our advice: Keep it simple at launch. Every extra strategy or jurisdiction adds regulatory layers that cost time and money. Start domestic, prove your model works, then expand.
Launching a fund successfully means walking before you run.
Building Your Operational Backbone: The Team Behind the Scenes
While your lawyers handle the legal paperwork, you need to build the operational machine that keeps your fund running.
Start with a fund administrator. They’ll handle your NAV calculations, investor statements, and coordinate with your other service providers. Don’t just hire anyone, though. Choose one who knows your strategy inside and out.
Next, set up your prime broker and custody accounts. Your attorney can help match you with brokers who understand your trading style and won’t balk at derivatives if that’s your game.
Don’t forget the basics, either: secure email systems, reliable internet, and cybersecurity that protects investor data. And a secret? Outsource everything that doesn’t make you money: bookkeeping, payroll, IT maintenance, the dirty work. Let specialists handle it while you focus on what you do best. Launching a fund means building a team, not doing everything yourself.
Compliance and Risk Management: Ongoing Regulatory Guidance
Here’s where launching a fund gets serious. You need a compliance advisor who knows the rules and regulations cold and can build your compliance manual, trading policies, and AML procedures from scratch.
Don’t cheap out here, either. The SEC, FINRA, NFA, and CFTC are all watching, and one missed filing can shut you down faster than a bad trade. Smart institutional investors know this too, which is why they grill you about your compliance setup during due diligence. They want to see independent administration, scheduled annual audits, and a compliance program that won’t embarrass them if regulators come knocking. And they will come knocking — regulatory exams are a when, not if situation.
Post-launch, you’ll face quarterly Form PFs, annual 13Fs, and dozens of other filings that pile up fast. Either assign someone internally or outsource it entirely, but don’t wing it. Compliance surprises kill funds.
Getting Investor-Ready: The Final Sprint to Launch
Once compliance is locked down, you need to get your financial house in order.
First, hire your auditor now, not next December when you panic about year-end financials. Smart managers bring auditors in early because they become startup partners who guide your accounting setup from day one. They’ll work with your administrator throughout the year to keep your books audit-ready to avoid nasty surprises later.
Find an audit firm that handles tax prep and regulatory compliance too. One-stop shopping means they can review your partnership agreement for tax efficiency and flag compliance issues before they blow up. When investors start asking tough questions during due diligence, you can confidently say you have independent PCAOB-certified auditors, top-tier administration, and third-party compliance from launch day.
Finally, get your investor onboarding materials ready. Pitch decks, subscription docs, and accredited investor verification processes all need legal approval before launching a fund and opening the money gates.
Post-Launch and Ongoing Management: Maintaining Momentum and Compliance
Congratulations, you’ve launched. Now the real work begins.
From day one, treat your day-to-day operations like you’re running a billion-dollar fund, because institutional habits start early. Strike NAV regularly with your administrator and review those reports for accuracy. Monitor liquidity, risk metrics, and performance so you catch problems before they explode.
Your annual audit kicks in fast after year-end, so schedule it early with your auditor. Investors expect their K-1s on time, and late tax filings scream amateur hour. Your compliance calendar becomes your bible with quarterly Form PFs, annual ADV updates, and 13Fs for large positions. Miss a filing, and regulators start asking uncomfortable questions.
Most importantly, keep talking to your investors. Monthly letters, quarterly calls, transparent communication about wins and losses. Small funds grow through word of mouth, and professional management beats flashy returns when building long-term relationships.
The Bottom Line: Your Fund Launch Success Depends on the Right Partners
The road map we’ve outlined gives you the sequence that works when launching a fund: attorney first, then administrator, compliance advisor, and auditor, followed by systematic execution of legal formation, operational buildout, and ongoing management. Most managers fail because they skip steps or try to save money in the wrong places. Follow this process and you’ll avoid the costly mistakes that end fund launches before they start.
We’ve spent over 30 years walking fund managers through exactly this process. At Michael Coglianese CPA, P.C., we provide the audit, tax, and regulatory compliance expertise that turns your fund from a great idea into a professionally managed operation. We handle the hand-holding you’ve been asking for, from prelaunch planning through ongoing compliance management. Your investors want to see independent oversight and professional administration from day one. We help make it happen.
Contact us today and let’s get your fund launched the right way.