That's the Catch 22... You can't justify the formation of a fund without some committed investors, but you can't get committed investors for a hypothetical fund. I started the Schindler Fund on a shoestring. I'm not a lawyer, but I used to write reinsurance contracts as a reinsurance underwriter, so I was able to form the limited partnership and prepare the subscription documents myself. So your first step is to try to keep your expenses down as much as possible. If you are long on time and short on money, research how to do some of the steps in formation yourself. I would recommend <u>How to Start Your Own Private Investment Partnership</u> by Geoffrey Fiszel and Randall Peteros, 1997 McGraw-Hill. (In the spirit of keeping my expenses down, I borrowed it from the library via inter-library loan!) As far as raising capital, you are in another difficult position -- you can't use broadcast marketing. The rule of thumb is that you can only market to people you have a prior relationship with. So if you meet someone and they ask you what you do for a living... well you just started a relationship with them -- now tell them about your fund! My first investors were neighbors, relatives, and former co-workers. You'll have to get out there and network: local chamber of commerce, school reunions, hedge fund conferences, block parties, anywhere someone might ask you what you do for a living and you can give your 30 second introduction about your hedge fund -- you've got a potential investor. Of course it works best if you move in circles where people have the risk capital available to invest with you. The pilots union meeting has more potential than the baggage handlers meeting! Good luck and please keep us updated on your progress.