Pricing
Fund setup costs and timeline
First Fund guidance is free. The fund itself costs money to set up and run. Our example is a basic closed-ended fund of £20m (about US$27m or €24m) domiciled in Guernsey, which we often recommend as good value. Expect about £84k (US$112k or €100k) in the first year and about £66k (US$89k or €79k) a year after that*. The figures on this page are for a Guernsey-domiciled fund only. Funds domiciled elsewhere or of a different size cost a different amount, and several funds sharing a protected cell company cost less each.
What First Fund charges
Nothing. We do not charge fund managers for our guidance or for introductions.
We work with a panel of fund administrators to help get fund managers the best deal. If you appoint a provider we introduced, that provider may pay us an introducer commission. We tell you before you decide whether a provider pays us, and you are free to appoint anyone you like.
So you get early help at the point you most need it, without another adviser's bill before the fund exists.
What drives the cost of setting up a fund
- The jurisdiction, and whether a lighter or a fully bespoke route is possible there
- The structure, from a cell in an existing company to a standalone fund with its own board
- How much legal work the documents need, which is the main variable
- Who your investors are and how many there will be
- How many directors you need and where they are based
- The size of the fund, as administration and audit usually cost more for a larger fund
- How busy the fund is - administration costs more for a fund with many transactions
What a £20m Guernsey-domiciled fund costs
These figures are for a fund of £20m (about US$27m or €24m) domiciled in Guernsey only: a basic closed-ended Guernsey Private Investment Fund, such as a property fund, at Guernsey provider prices of November 2026. All figures are in pounds sterling, with the totals in US dollars and euros below. A fund domiciled in another jurisdiction will cost a different amount, and a larger or busier fund usually pays more for administration and audit.
| Cost | Year 1 | Year 2 |
|---|---|---|
| Legal fees for the fund documents | 15,000 | - |
| Incorporation, regulatory application and data protection registration | 2,575 | - |
| Fund administration | 40,000 | 40,000 |
| Audit | 15,000 | 15,000 |
| Director provided by the fund administrator | 6,000 | 6,000 |
| Directors and officers insurance | 3,000 | 3,000 |
| Regulatory, annual validation and data protection fees | 2,200 | 2,200 |
| Total | 83,775 | 66,200 |
| Second independent director, only if needed | 20,000 | 20,000 |
| Total with a second independent director | 103,775 | 86,200 |
The totals in US dollars and euros
Converted at the exchange rates on 21 October 2026 and rounded to the nearest 100. The providers quote in pounds, so the dollar and euro figures move with the exchange rate.
| Total | GBP | USD | EUR |
|---|---|---|---|
| Year 1 | 83,775 | 112,200 | 99,900 |
| Year 2 | 66,200 | 88,700 | 79,000 |
| Year 1 with a second independent director | 103,775 | 139,000 | 123,800 |
| Year 2 with a second independent director | 86,200 | 115,500 | 102,800 |
Why two directors
In this Guernsey example the fund normally needs two directors in Guernsey. Your fund administrator will usually provide one, which is the £6,000 a year in the table.
You only need a second independent director, about £20,000 a year, if your own fund directors would rather not fly to Guernsey for the four board meetings a year. Independent fund directors.
Not included
- Property or asset management
- Valuations, usually quarterly for a property fund
- A regulated manager, where your route needs one
- Tax advice and FATCA and CRS reporting
- Bank charges
Administration can cost more for a fund with many transactions or a higher risk profile.
Legal fees vary the most
Legal fees are the main variable in what a fund costs to set up. The £15,000 in the table is for a basic closed-ended fund. A more bespoke structure, more complex documents or more rounds of drafting can cost much more.
We work with a panel of local law firms that can provide a menu of fixed prices for common fund structures, so you know the legal cost before the work starts.
Getting you the best deal on administration
Fund administration is the biggest single cost in the table. We work with a panel of fund administrators to help get fund managers the best deal. We help you compare administrators on price, service and experience with your type of fund before you appoint one. An administrator we introduce may pay us an introducer commission, and we tell you before you decide.
What you pay even if the fund raises no money
Until the fund has investors, you as the manager pay its costs. If it never raises money, those costs stay with you. In the Guernsey example that is at least the setup costs of about £17,600, plus the running costs from the day the fund is set up until it is wound up.
- Legal fees for the fund documents, about £15,000 in the example, paid as the documents are drafted.
- Incorporation, the regulatory application and data protection registration, about £2,575.
- Running costs from the day the fund is set up - administration, the director, insurance and regulator fees. The minimum fee and notice period in the administration agreement decide how much you pay if you close the fund early.
- An audit for any year end the fund reaches, and the cost of winding it up if you close it.
Keeping the money at risk down
- Agree fixed legal fees before work starts - our panel of law firms offers fixed prices for common fund structures.
- Line up anchor investors before you appoint providers.
- Ask the administrator when full fees start and what the minimum term is.
- Consider a cell in an existing protected cell company, which avoids most of the setup costs.
What can be charged to investors
Once the fund has investors, most fund-level costs are paid by the fund, so investors share them in proportion to their holdings. The fund documents set out exactly what can be charged, and investors read this part closely.
| Cost | Usually paid by | How it usually works |
|---|---|---|
| Setup costs - legal, incorporation and registration | The fund, repaid to you at first close | Only up to a cap set in the fund documents. You pay anything above the cap, and all of it if the fund never closes. |
| Administration, audit, directors, insurance and regulator fees | The fund | Shared by investors once the fund has money. You pay them before then. |
| Deal costs, such as valuations and legal fees on purchases | The fund | Including deals that do not complete, if the fund documents allow it. |
| Management fee | The fund, paid to you | Pays for your own team, office and the manager's own regulation. |
| Performance fee or carried interest | The fund, paid to you | Only on profits above the level agreed in the fund documents. |
| Your team, office and the manager's regulation | You | Paid from the management fee, not charged to the fund. |
| Fundraising costs, such as placement agents | Usually you | If the fund pays them, investors usually expect them to be taken off your management fee. |
Investors push back on anything that looks like your own overheads, so keep the fund's expense terms clear and reasonable. Your lawyers set the exact wording in the fund documents.
Several funds in one protected cell company
A protected cell company (PCC) is one company split into cells, each with its own assets and liabilities kept apart from the others. Funds sharing a PCC share its board and providers, so each further fund costs much less to run.
In the same example, each further cell adds about £26,000 a year, mainly administration and audit, plus its own legal and setup costs. Directors usually charge more as cells are added. The trade-off is less control and less of your own brand.
Other jurisdictions
Guernsey and Jersey are often among the lower-cost places to set up a private fund. Luxembourg and Ireland usually cost more, and the Cayman Islands, the UK, Delaware and Singapore each have their own cost profile.
We help you compare realistic budgets across the major fund jurisdictions before you commit. Fund jurisdictions compared.
How long it takes to launch a fund
Think in months rather than weeks for a standalone fund. A cell in an existing protected cell company can be faster. The regulator is rarely what holds a launch up: a Guernsey Private Investment Fund is registered within one business day of a complete application and a Jersey Private Fund can be authorised within 48 hours. Documents, provider onboarding and bank accounts usually take longer.
| Stage | What happens |
|---|---|
| 1 | First consultation and the structure decision |
| 2 | Choosing the jurisdiction and service providers |
| 3 | Legal documents and setting up the fund vehicle |
| 4 | Appointing directors and setting up governance |
| 5 | Regulatory application or registration, where needed |
| 6 | Bank accounts, investor onboarding and launch |
* Indicative only, for a fund of £20m (about US$27m or €24m) domiciled in Guernsey, based on November 2026 Guernsey provider prices for a basic closed-ended Private Investment Fund: setup about £17,600 and running costs about £66,200 a year, including one director provided by the fund administrator. Add about £20,000 a year for a second independent director if your own directors will not travel to Guernsey for board meetings. Property management, valuations, tax reporting and any manager costs are extra. A larger or busier fund usually pays more for administration and audit, and each further fund in a shared protected cell company costs less. US dollar and euro figures are approximate, converted at the exchange rates on 21 October 2026. See fund setup costs.
Get a realistic budget for your fund
Tell us about your fund and we will talk you through the likely setup and running costs for the routes that suit it.