Question

do you need a lot of money to start a private equity? how much? how much can you borrow?

Answer 1

There are certain criteria before starting a private equity fund and one need to have a minimum of $1 million of net worth except the primary home he is having, or his individual income has been greater than $200000 for last 2 years.

The minimum amount which will be required in order to start a private equity fund will be somewhere around 10 million dollars to 20 million dollars. This minimum amount has not been specified by the law but it will minimum be required in order to convince the investors.

There are no Capital on amount of borrowing and they can borrow by meeting with various prospective investors and making them believe in their investment criteria.