Launching an investment fund typically costs $20,000 to $70,000 in legal fees for the required documents. A bundled service called Black Card runs about $30,000 and covers legal work, coaching, and events. These startup costs get reimbursed from the capital you raise.
So, if you raise $10 million, you just reimburse yourself on the startup cost.
What's the cost involved in opening a fund?
Good question. So, you have what they call an LPA, limited partnership agreement, and a private placement memorandum. PPM and LPA are the 2 documents. They're thick, they're like 100 pages each. Starting cost is usually $30,000. If you look on Google, it's $50,000, $70,000, it can be in that range. Low as $20,000, it's kind of your range for legal docs. That's just the legal. That's a startup cost of the fund, it can be reimbursed back to you. That's Once the fund launches, which is good. But that's kind of your range, probably $30,000-$40,000. Now, at Fund Launch, what we do, we partner with 8 law firms and we get a group discount. So we generally— our main product is called Black Card. It's $30,000 total. You get the legal docs plus all the coaching plus events plus everything, and we talk them down. They usually charge $30,000. We talk them down to a smaller price for a group discount. Now, and when you launch, then you're going to pay for audits and tax and legal stuff. But all that being said, once the fund raises money, it's a reimbursable expense. Back to the fund. So if you raise $10 million, you just reimburse yourself on the startup costs.
