Hedge Fund Business Plan Template [Updated 2024]

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I. Executive Summary


You can download our business plan template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] specializes in alternative investing using money and assets pooled from accredited investors, with the goal of maximizing returns and minimizing risk. [Company Name] employs fund managers experienced in using a range of strategies to earn above-average returns. Generating superior, risk-adjusted investment returns is the main driving factor for the success of [Company Name].

Techniques

[Company Name] will provide pooled fund investment services that seek to make high returns, using the following techniques:

  • Rapid price discovery
  • Mathematical and statistical processing
  • Risk measurement and control
  • Active trading

Customer Focus

[Company Name] will primarily serve high net worth individuals in the [location] metro area. The demographics of these customers are as follows:

  • 345,600 high net worth individuals
  • 7.52% of households in the state are accredited investors

Management Team

[Company Name] is headed by its founder, [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an investment manager for [x] years at an investment firm where he was able to learn the ins and outs of the investment industry. This experience will be the company’s most valuable asset.

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

  • [Company Name] will fill a specific market niche, providing investment options for the large population of high net worth individuals in the area.
  • In addition, we have surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
  • The management team has a track record of success in investment services.

Financial Highlights

[Company Name] is seeking a total funding of $250,000 of debt capital to open its hedge fund business. The capital will be used for location build-out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Headquarters design/build: $50,000
  • Working capital: $200,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Topline projections over the next five years are as follows:

Year 1Year 2Year 3Year 4Year 5
Revenue$738,000 $1,716,272 $2,007,297 $2,331,125 $2,694,524
Total Expenses$639,595 $1,021,515 $1,110,127 $1,190,308 $1,273,715
EBITDA$98,405 $694,757 $897,169 $1,140,817 $1,420,809
Depreciation$16,560 $16,560 $16,560 $16,560 $16,560
EBIT$81,845 $678,197 $880,609 $1,124,257 $1,404,249
Interest$18,554 $16,235 $13,916 $11,596 $9,277
Pre Tax Income$63,291 $661,962 $866,694 $1,112,661 $1,394,972
Income Tax Expense$22,152 $231,687 $303,343 $389,431 $488,240
Net Income$41,139 $430,276 $563,351 $723,230 $906,732

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