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    3 Replies Latest reply on Dec 28, 2009 3:33 PM by phanio

    Am I on the right path to starting a private equity firm?

    sheaosaurus Newbie
      I am 19 years old (I already live in New York City), I am starting college this summer with courses focusing extensively on accounting, economics, math related courses and any investment courses they may offer (this will be at a community college). After which, I plan to transfer to NYU Stern to pursue a bachelors degree in Business Finance. Then, depending on any job offers at investment banks I may have, I will take a job or continue on to get my MBA. Ultimately, I want to work at Goldman Sachs (luckily, I already have contacts there) Barclays or another investment banking firm as an analyst then work my way up gaining contacts and experience and a resume. From there, I want to work on putting together my own private equity firm that raises capital through trading, investing in small businesses and commodities and investing in real estate. I already have a business plan set (I'm sure it can use revisions) that include the hiring of associates, the type of firm (I want to incorporate it -thoughts on this please), risk management, asset protection, compensation structure and technology (office equipment). I am still deciding on which bank I will use and which attorney office I will employ. It is my dream to eventually open an investment bank and I think this would be a right step in that direction I currently am working as a real estate agent (by the time I am 21 I will have my brokers license) in Manhattan so I would have real estate experience to show my investors and a steady and career like job history to show my potential employers after I graduate. Any advice or comments or critiques would be greatly appreciated as well as any contacts or networking information that you may have. Thank you and best regards.
        • Re: Am I on the right path to starting a private equity firm?
          LUCKIEST Guide
          Am I on the right path to starting a private equity firm??

          YES it sounds like you are on the right path for a person of 19 years and it is great that you already have a business plan set.

          Suggestion: Go to Members page and share some MORE info.

          If you want a mentor to talk to, I volunteer.

          Good luck in the new year, LUCKIEST
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          • Re: Am I on the right path to starting a private equity firm?
            phanio Pioneer
            Sounds like you have it all planned out - just need to execute it now. To your question on incorporating - might look into a 10 year LLC first. Most private euity are set this way a it offers better protection for your limited partners as well as offers you tons of flexibility.

            Good that you are seeking to gain experience first. While you do this - network, network, network. It is this networking in the indutry that will 1) brand your name 2) get you in front of the right people that can help move in the right direction and 3) get you the list of investors you will need.

            One suggestion for a mentor is a prominent VC in the NY area. His name is Fred Wilson and is the founder of Union Square Ventures. He also runs a blog called A VC. Seek him out - he is very approachable - and see if he will mentor you.