How PE Funds Really Get Started | Stephanie Srulowitz (Co-Head of U.S. Private Funds at Weil, Gotshal & Manges)

What does it really take to spin out and start your own private equity firm?
Stephanie Srulowitz, co-head of U.S. private funds at Weil, Gotshal & Manges, joins The Data Minute to break it all down. From legal structure to fundraising strategy to LP negotiation tactics, she and Peter walk through the three common paths to fund launch (and which is the hardest), why some seed capital can come at a steep cost, and how new managers should think about anchor LPs, placement agents, and fund terms that will echo into fund two and fund three.

Stephanie also shares inside-the-room stories on restrictive covenants, compensating service providers before a fund closes, and why being “too creative” in today’s market can actually limit your LP base. Whether you’re thinking about breaking out or just understanding how PE firms begin, this is your private equity masterclass.

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01:08 – Willkie’s view of the PE landscape and emerging managers
02:30 – Who starts PE funds? Mostly spinouts
04:49 – Why top performers are leaving their posts to go solo
06:27 – LPs and seed capital: Are they finally warming to first funds?
07:42 – Step one in starting a fund? Figure out where your capital is coming from
08:46 – Placement agents: what they do, how they work, and how they get paid
11:01 – Why PE sponsors must still sell themselves
13:15 – What it really means to “go down market”
14:01 – Step two: restrictive covenants, forfeited carry, and what you’re leaving behind
15:44 – Risk tolerance vs. relationship management: how managers differ in how they leave
17:08 – When can you have fundraising conversations
18:57 – Fundless deals, seed capital, and three different launch strategies
20:59 – The tradeoffs of giving up equity in your management company
22:28 – Is creative fundraising becoming more common?
23:14 – What a “smart” fund target looks like right now
26:20 – Fund two timelines: why they’re stretching again
27:20 – How do sponsors cover Fund I startup costs?
28:39 – Why service providers understand the game
29:50 – The most important part of the fundraise: differentiation and focus
31:21 – The challenge of DBMs: Differentiated But Middling
32:03 – Track records and SEC rules: why it’s hard to talk about your wins
33:47 – LPs still want standard PE terms
35:00 – How institutional LPs think about silos, comparisons, and mandates
36:43 – Fundraising strategy 101: anchor first vs momentum building
38:19 – The hidden cost of big anchors: equity, carry, and long-term economics
40:04 – What anchor term sheets usually ask for
41:39 – “Forever” is a very long time: sunset clauses and Fund IV reality
43:00 – Fund terms are hard to walk back
44:57 – What actually trips up LP negotiations
46:09 – Holding periods, evergreen funds, and how structures are evolving
48:38 – Behind the curtain: how top counsel help sponsors differentiate
49:47 – Lessons from the compliance side: RA registration and when it kicks in
52:16 – Why a strong advisory bench is a force multiplier

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