You're a talented fund mgr. You've got money to launch your fund.

How much do you put in the fund vs operating capital?

What message does the allocation % send?

Here's the scenario:

➡ Three talented fund mgrs breakaway from a big, launch a boutique, and a fund.

➡ $30 million of their own money

➡ They don't want to put a dollar into operating cap, 100% to seed fund. Raise operating cap from external investors.

Let's think it through

What message are they sending to investors? (fund investors or investors in their asset mgmt biz)