Private investment is the lifeblood of the world economy.
Start private investment management will not be an easy task, but with dedication, knowledge and some luck, you and your customers will be satisfied with the cooperation.
You will need
- - Investment strategy-
- - good marketing-
- - investors.
Determine what kind of investment you will take,On which market niche your company will be involved. The most typical activities of private investment companies are operations with stocks and bonds, but many of them also interact with commodity futures, foreign exchange and various options strategies.
Organize your company. If you are the owner or operator, it is relatively simple. You need to decide in which areas it is better to invest and how to properly allocate capital in accordance with the chosen directions. If you are going to start with larger operations, and also hire several employees, think about organizing the company on a departmental line. Open the departments of bonds, goods, currencies, as well as an office for investor cases and other administrative matters, each of which must be managed by a senior employee.
Select the type of entity. Most investment companies are organized in the form of a mini-corporation, a limited liability company. Also, consult your accountant about the tax status that suits you. For example, if you have an LLC form, then you can either be taxed only with the appropriate tax.
Register in the appropriateRegulatory authorities. Most private investment companies must be registered with the Securities and Exchange Commission, but if your company specializes in unique financial products and transactions, it is possible that you will also need to register with the Commodity Futures Trading Commission and the National Securities Futures Association.
Attract investors. They can become both individuals and institutions. Monitor compliance with regulatory requirements for the preservation of private information, analyze the risks and benefits of your investment strategy.