Fund formation We form your next fund and fill it with LPs.

Fund formation is the work of setting up an investment fund: the structure, the limited partnership agreement and the regulatory filings. At spectup our partner law firm does that legal work.

A private equity fund is usually formed as a limited partnership. Investors commit capital as limited partners, the general partner makes the investment decisions and a management company earns the management fee. Our partner law firm forms that structure, drafts the limited partnership agreement and makes the filings; spectup writes the memorandum from the agreement and brings in the investors. Formation and raise overlap in time, so the investor questions reach you and counsel while the documents can still take them.

A private equity fund needs the limited partnership agreement, the private placement memorandum, the subscription documents each LP signs and, where investors ask for them, side letters. The partner law firm drafts the legal documents. spectup writes the memorandum from the agreement and runs the process to the first close and on to the final close.

Fund formation creates the vehicle: the structure, the agreement and the filings. Fundraising fills it: the memorandum, the investor targeting and the LP meetings. They overlap in time, so spectup runs them as one piece of work.

A continuation vehicle is a new fund that takes over one or more assets from an existing fund, a GP-led secondary. Existing LPs choose to sell for cash or to roll into the new vehicle, and new investors can be added beside them. One memorandum sets out the assets, the election and the terms as agreed. The partner law firm forms the vehicle; spectup writes the memorandum and places it with the investors.

A successor fund continues the strategy of your existing fund with the next vintage. Your existing LPs are approached first and new investors join beside them.

Yes. The track record of the existing funds and the team has to carry over, and the private placement memorandum makes the case for the team in the new field. LPs diligence that case, so the memorandum and the numbers behind it have to hold.

Established managers forming their next vehicle: a successor fund, a fund in a new strategy or a continuation vehicle. We take a vehicle of $50M or more, with a track record an LP can diligence.

The formation timetable depends on the structure and the jurisdiction, and the partner law firm sets it with you. The raise does not wait for it: a fund placement typically runs eight to twelve months, depending on the size of the raise, and it can start while the fund is still being formed. How many existing LPs commit again and how quickly diligence runs move the date of the final close more than anything else, so we plan the timetable with you after the first call.

At the first close the first LPs commit and the fund can start. Later closes admit further LPs until the final close, when the fund is closed to new commitments.

The cost depends on the structure, the jurisdiction and the size of the fund. The partner law firm quotes the legal work. spectup works on a retainer plus a success fee, set out in a proposal after a first call. There is no fixed price list for either.

The legal formation is done by our partner law firm: the fund structure, the limited partnership agreement and the regulatory filings. spectup adds the private placement memorandum, the investor targeting, the LP meetings and the diligence, so formation and raise are run as one piece of work to the final close. We do not give legal advice and we do not negotiate terms; both stay with counsel and you.

No. spectup is a private capital advisory firm and does not give legal advice. The legal formation work is done by our partner law firm.

No. Terms are agreed between you, your counsel and the investors. spectup states them in the private placement memorandum as agreed and does not negotiate them.

The private placement memorandum is written from the limited partnership agreement, so the two have to say the same thing. Drafting them together keeps the figures LPs read in the memorandum identical to the ones in the agreement, and what investors ask about the structure reaches you and counsel while the documents can still take it.

No. We can start while the partner law firm is working on the structure and the agreement.

Yes. After the memorandum we introduce the fund to investors and LPs from a network of 440+ direct relationships, run the meetings and manage diligence to the final close. For how the placement runs, see our private placement agent page.