Matthew Wilson, managing partner at
HedgeStart Partners LLP, gives a step-by-step
guide to devising a successful business plan
Starting a hedge fund? But where exactly do you start? The
adage - 'if you don't know where you're going, you won't know
when you've got there' - is most certainly true. Planning your
new business carefully and diligently will pay back many times
over in the months (and years) to come.
As most experts will tell you, there isn't even a clear
definition of what a hedge fund is, let alone what its business
model should look like. Variables such as strategy, fee rates,
leverage and domicile all have some impact on the definition.
Others such as investor base, size, culture and long-term
objectives will also play a significant factor in determining
the optimal business model. If you are launching from within an
existing institution, then many of the variables will be