How To Start A SAAS

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                                           What is Private Equity?
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                                        Private equity is raising money and investing it to buy a privately held company that is in trouble or has growth potential. It's like turning a house upside down. If you find something of unseen value that needs work, fix it and sell it to someone else to make money, or leave it alone if you need cash. Now various companies can do this. Tech companies are the most commonly heard of, but they're not the only ones in the world. I also know a few other personalities who do this. The possibilities are truly endless.
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                                          How will I be paid?
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                                       There are general partnerships that are managed by fund managers, and there are limited partnerships where investors (or limited partners) deposit money for investment. As far as, it makes sense? 
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                                       Let’s assume I now have a separate entity called an Investment Advisor for less than $150 million and a Registered Investment Advisor for more than $150 million. This is what the SEC has to do with it and how they get their administrative fees. The way I will get paid is based on a few different things. It's based on what it's called. For example,it has an 8% priority in my fund. This means that the first 8% of all returns will be sent to my limited partner with no fees. So, if I get a 7% yield, all the money goes to the investor. This is to reward investors who have invested in my fund. Then I keep 8% to 10% of all these profits. Once the revenue is over 10%, I split the revenue 80/20. That is, get 20% of any percentage above the 10% mark. If you end up with a 20% return, then split it 50/50 by percentage. My pricing is based on performance only. This gives you the incentive to do good business for your investors. Some funds charge an administration fee, which is usually 2%, but not mine.So, what you want to do is totally up to you. Make sure the fees are clearly stated in the Limited Partner's fund documentation. These become the foundation's "bible" and the laws of its agreement with them.
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                                            How do Private Equity Funds work?
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                                      What I teach my students now is a little less traditional than what someone on Wall Street might do when they raise money. I tell them that you need to pitch an investor. So, what if investors don't like your ideas or investment theory? Now you have to go back to the drawing board and still pay legal fees! So, this is a better way to start a fund. A mentor of mine once told me that the reason people fail is that they don't believe in the deal itself. It's not foolproof, and it's too risky. With one of my fund-launch methods, we can eliminate this. My formula helps people understand that they have to find incredible deals. Then assemble the deal. They write all the numbers, charges, and returns on a blank sheet of paper and are easy to read. Now we are different here. I recommend approaching investors before launching a fund. The reason is that investors will trust you more when it comes to making real trades than when theorizing what they can do with their money. You will find that legal documents and fees can be handled. Best of all, the money spent on these documents will be reimbursed by the fund. You have eliminated all risks. It's up to you to close the deal and see it through to the end
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                                         Creating a fund does not have to be risky. There is no need to follow Wall Street. I don't think it's a good idea to follow their path. I certainly wouldn't, because it's too risky for me. With my funds, I was able to safely and systematically raise millions of dollars. Limited partners invest in the fund and receive an ownership stake. The general partner manages the fund and takes some of the risks. Limited Partners are limited in their liability. They approve LPA and PPM, which are two very thick legal documents that essentially say what your fund can and can’t do, but you need to understand these documents in and out because investors are going to ask you about little minute details as they put money into the fund because they believe you have expertise. All these documents are handled under the cabinet commandments of Regulation D-506 B.
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                                         the funds raised worldwide! First, there is the general partner (GP). Means you are the one in charge. GPs manage Limited Partnerships (LPs). This is also called a "fund". Here comes the money! Next is the LP (Limited Partner). A limited partner is an investor, who put money into the fund. LPs are limited in terms of liability and can "talk" within the fund. As a family doctor, you manage and invest your money where it needs to be.
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                                         On the other hand, LPAs and PPMs are very bulky and expensive legal documents that are essential for private equity funds. Both LPA and PPM agreements must be signed before an investor can formally invest in a fund. Additionally, these documents describe what the fund can and cannot do. But the best part is that, as a GP, you can set the rules for your fund. When the fund makes a profit, it will be distributed according to the rules you set. Some go back to LP; some go back to you. The SEC has stated that the capital raised through this structure is unlimited. No cap! The SEC refers to this type of fund as Regulation D 506(B). In summary, this simple structure shows how multi-million and billion-dollar private equity funds work.
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                                         Ever wonder how private equity, hedge funds, and investment fund structure their returns? This structure helped me start my first fund. This is the same structure used by other Wall Street funds. A "Private Equity Waterfall" is a slang term for how partners distribute the profits of their investments. This is common in all types of private equity investments, particularly in the real estate private equity industry. A private equity investment structure aims to coordinate the interests of various parties investing in a single transaction or private equity fund. Private equity waterfalls can take many forms, depending on the goals of each party, ensuring that other stakeholders and other parties have the right incentives to invest.Proper alignment requires both legal and financial mechanisms, but we will focus on the main financial incentive used to align interests between parties: the distribution waterfall. Investment results are never guaranteed, but a distribution waterfall provides a concrete understanding of how cash flows will be shared, ensuring partners can align their interests. The term “waterfall” is used to describe how funds from an investment flow to the various parties involved. The top-down nature of the cash flow distribution indicates the relative priorities of parties at various levels.
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How To Start A SAAS

Chapter-1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Chapter-6

Chapter-7

Chapter-8

Chapter-1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Dan Lesniak

Cody Davis

Samuel Zell