Maclean Palmer

1. Evaluate Maclean Palmer’s decision to create a new venture capital fund and his progress to date. 


Palmer and his 4 partners are going to quit their jobs and move to Boston with their families. They are going to craft an offering memorandum for a private equity fund. Palmer had an idea for developing a fund for minority business. The time when he came up with the idea was good because traditional VC were not focused on minority business. But he was lacking of members. So he needed to build a team to deal with the professionalism. He also asked advice from Wanda Felton. Felton suggested him to select a limited partner and look for a successful venture. Palmer built a group with talented young men and experienced retired manager.

2. What do you think of his team? 


His team was full of energy. Members were young and talented. They also had an experienced retired senior executive. Members had diverse set of skilled which can satisfy most of the need of the running of the fund. Also, all of them were committed to the fund. They had a good deal of operating experience, so they know what to do when they have the deals.

3. Outline the major risks you see; the due diligence questions you would focus on, and whom you would contact as a pension fund analyst or prospective limited in the fund. 


Putting money into a first time fund has all the risks related with a typical start up investment. LT commitment without ability to get out.

I would focus on: Do the general partner and the team have enough private equity investing experience and resources to execute the strategy?
 Do they have a meaningful track record in the stated strategy?

I would contact as a pension fund analyst GSA and as prospective limited in the fund institutions, endowments and individual investors.

4. Outline in detail what you would include in a private placement memorandum to market the fund to potential investors. 


Introduction: limited partnership, the partnership...