ForumsStarting a Business

What is the better strategy for starting a business - a Fund or Company? Apart from the structural differences and time to raise capital for the moment, is there a advantage of one vs the other? Consider a business that invests in projects and companies. Additionally, assume the business requires $6mm in working capital annually. Two options: 1) Fund (2% mgt fee and 20% carry) - raise $300MM, 5-10 yr lock up . Collect $6MM in mgt fees to support SG&A and make investments. 2) Company - whether LLC or not - raise working capital of $6MM ( for as many years as possible) in exchange for equity in company, let's assumes its 20% (probably more like 10-15% though)...and have a $300 line of credit from investors to make investments. Appears that the Fund has more control and longer life...not always worried about working capital. Though, Company may be able to attract "fund" money where the Fund could not, if fees on fees are prohibited. And presuming a track record is important for starting either, I am questioning why one woud ever start a Company and not a Fund.