Launching Your Next Private Capital Fund: A Practical Guide for Managers 

Belasko’s Head of Funds, Nick McHardy, looks at the practical steps involved in launching and operating a private capital fund.

This piece reflects on foundational aspects such as fundraising, documentation, fund structuring as well as service provider selection – giving a useful guide on operational aspects and fund lifecycle management.

Every private capital fund manager is unique. Whether you’re raising your first fund or planning your next, the journey from concept to launch is complex and demands strategic decision-making, operational discipline, and an understanding of investor expectations.  

Here are some pointers for you to consider when raising a first fund: 

• Fundraising: Raising capital is often the most challenging stage. Common pitfalls to avoid include underestimating timelines, overcomplicating fund structures, neglecting operational readiness, and failing to plan for macroeconomic or political headwinds. To avoid this, first-time managers should consider building a data room early, focusing on concise and visual storytelling, prioritising relationship-building, and staging fundraising goals to secure cornerstone investors first. Transparency on GP commitment and leveraging advisors effectively can further strengthen investor confidence. 

• Fund documents and negotiation: Understanding and negotiating fund terms is critical to a successful launch. First-time managers should consider core legal documents, from limited partnership agreements (LPAs) to subscription agreements to side letters and provides practical guidance on structuring negotiations. Key considerations for new managers include LP alignment, incentive structures like carried interest, and fund governance. By preparing in advance, anticipating investor priorities, and leveraging expert legal advice, managers can protect their fund terms, avoid common pitfalls, and build credibility with LPs from the outset. 

• Fund structuring and jurisdiction: Choosing the right fund structure and domicile has a significant impact on investor appeal, regulatory compliance, and operational efficiency. There are a number of LP-GP models, evergreen and rolling fund structures, and deal-by-deal options. Managers should consider jurisdictional trends across asset classes to help make informed decisions about where to domicile their fund based on tax efficiency, regulatory frameworks, investor expectations, and long-term scalability. 

• Service provider selection: Your service providers are more than vendors. They are extensions of your team. First-time managers need to build a provider ecosystem that supports operational efficiency, credibility, and long-term growth. From fund administrators, auditors, and legal counsel to placement agents, technology partners, and ESG consultants, selecting the right providers is critical for smooth day-to-day operations, investor reporting, and regulatory compliance. 

• Operations and lifecycle management: Launching a fund is just the beginning. New managers should look for guidance on capital raising, deployment, and ongoing fund operations, including banking, FX, financial reporting, governance, and wind-up processes. A strong operational setup reduces burden, mitigates risk, and helps managers focus on deploying capital and generating returns. 
   

Looking ahead 

Successfully launching and managing a fund requires more than a compelling investment strategy. It demands strategic foresight, operational discipline, robust governance, and a trusted ecosystem of service providers. By anticipating LP expectations, understanding jurisdictional nuances, and building scalable operational and reporting capabilities, managers can differentiate themselves and establish credibility in a competitive market. 
 

Private Capital Fund Toolkit 

To help managers navigate this process, Belasko has created their “Launching a Private Capital Fund Toolkit” – a practical, comprehensive guide designed to support managers at every stage of the fund lifecycle. 

Our toolkit draws on insights from years of experience across private equity, venture capital, private credit, and real estate, as well as best practices from multiple jurisdictions. It covers the critical phases of launching a fund: fundraising, fund structuring, service provider selection, operational readiness, and ongoing lifecycle management. 

Click here to read the full guide and access practical insights, expert advice, and tools to help you navigate every stage of your fund launch with confidence.
 

About Belasko 

At Belasko, we’re redefining what exceptional looks like in fund administration. We support managers at every stage of the fund lifecycle, from fund formation and fundraising to operational setup and ongoing administration. Our team combines strategic insight with technology-driven solutions to simplify reporting, strengthen governance, and ensure full regulatory compliance. 

If you’re planning your next fund and would like expert guidance or support, our funds experts are ready to help.  

For more information, please contact Nick McHardy, Head of Funds at Belasko ([email protected]).  
 

Authored by Nick McHardy,
Head of Funds at Belasko