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Set up and run a fund through a holding company structure is possible, especially for starters?
Open a company as a holding company
own the ordinary shares by you
issue redeemable preference shares to investors so you maintain control
Run the business as if you manage the pool of money
So technically, the investors are buying into your company and by law you do not need licence since you are not providing service traditionally.
This would be very cost effective for budding managers to create a track record for a start.
Am I missing anything or is this perfectly fine?
Buffett’s structure is also a holding company
Asked on April 16, 2012 at 24h:24 am
April 30, 2012 at 12:08 pm