The SMB Show

Private Equity Below £20m: All The Work None of the Money


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Starting a private equity fund sounds attractive, until you run the numbers.

If your fund is £20 million or smaller, the traditional 2 and 20 private equity model often fails to generate meaningful income for the fund manager, especially in the UK under FCA and AIFMD regulations.

In this video, I break down the real economics of small private equity funds and explain why management fees rarely cover costs, carried interest takes years to materialise, and UK regulatory overhead makes sub-£20m funds structurally inefficient.

Aspiring private equity fund managers, Operators considering raising a first-time fundInvestors curious about how PE funds really make moneyAnyone evaluating UK private equity fund structuresIf you’re thinking about starting a private equity fund in the UK, watch this before you commit capital, time, or reputation.

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My M&A advisory firm https://5dcapitalpartners.com/

If you want to work directly with me and my team to get acquisitions done, visit https://app.iclosed.io/e/Zak5D/5d-private-strategy-session

Join our Skool community https://www.skool.com/5d-program-6807

Work with me: https://go.deeludlow.com/vsl

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The SMB ShowBy Dee Ludlow

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