Private Equity Below £20m: All The Work None of the Money episode artwork

EPISODE · Feb 25, 2026 · 4 MIN

Private Equity Below £20m: All The Work None of the Money

from The SMB Show · host Dee Ludlow

Send us Fan MailStarting a private equity fund sounds attractive, until you run the numbers.If your fund is £20 million or smaller, the traditional 2 and 20 private equity model often fails to generate meaningful income for the fund manager, especially in the UK under FCA and AIFMD regulations.In this video, I break down the real economics of small private equity funds and explain why management fees rarely cover costs, carried interest takes years to materialise, and UK regulatory overhead makes sub-£20m funds structurally inefficient.Aspiring private equity fund managers, Operators considering raising a first-time fundInvestors curious about how PE funds really make moneyAnyone evaluating UK private equity fund structuresIf you’re thinking about starting a private equity fund in the UK, watch this before you commit capital, time, or reputation.----------------------------------------------------My M&A advisory firm https://5dcapitalpartners.com/If you want to work directly with me and my team to get acquisitions done, visit https://app.iclosed.io/e/Zak5D/5d-private-strategy-sessionJoin our Skool community https://www.skool.com/5d-program-6807Work with me: https://go.deeludlow.com/vsl

Episode metadata supplied by the publisher feed · Published Feb 25, 2026

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Send us Fan Mail Starting a private equity fund sounds attractive, until you run the numbers. If your fund is £20 million or smaller, the traditional 2 and 20 private equity model often fails to generate meaningful income for the fund manager, especially in the UK under FCA and AIFMD regulations. In this video, I break down the real economics of small private equity funds and explain why management fees rarely cover costs, carried interest takes years to materialise, and UK regulatory overh...

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Private Equity Below £20m: All The Work None of the Money

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