Serena Williams’ $100m Fund – How She Launched It
Click HERE to view their legal Form D filing
Click here to view their legal Form ADV filing
Serena Williams, the world’s best tennis player, raised over $100 million for her private equity fund. I’ll show you how she created it, structured it, and raised the money. Maybe you can learn from her success by the end of this video. Williams wanted to invest in underrepresented women and people of color in America through her private equity fund, Serena Venture Fund One L.P. To do this, she used the Regulation D 506B exemption and created a limited partnership in Delaware. Additionally, she created a general partnership and an investment manager known as an Investment Advisor. The Securities and Exchange Commission was notified about the capital raise. The information suggests that Williams likely had preexisting relationships with her investors, as the Regulation D 506B exemption allows for quiet, private capital raises. The investors on the Serena Ventures website are part of her team, indicating a lack of outreach to outside investors. (serena williams fund)
Kim Kardashian’s private equity fund is very different. In raising over $100 million in Washington D.C., Serena Williams created SJW Investments LLC as the investment advisor, connecting it to all future funds. She also created Serena Ventures Partners GP LLC as the general partner for a specific fund. The fund was raised using pre-existing relationships with investors, and its focus is on investing in companies to provide returns. It’s publicly known that the fund is a pool investment and venture capital fund, aiming to invest in standout deals for great results, likely without making control investments. In summary, Serena’s fame and specific investor relationships allowed her to quickly and privately raise capital without the need for a big campaign. She likely also invested some of her own money in the deals and in creating the fund, making her approach more relationship-driven than others. (serena williams fund)
The focus was not on capital raising, but rather on deploying capital as there was no need for a big campaign. Serena used her leverage to originate deals for the fund instead. She created three companies: the general partner, the investment advisor/investment manager, and the limited partner, which can be seen on the screen. Before launching the fund, she invested for nine years, building a track record and relationships with a few high-quality investors. It’s likely she used her close connections and put a significant amount of her own money into the deals. (serena williams fund)
This type of fund structure is best suited for someone who already has a lot of capital to deploy, only wants a few investors, and is more interested in originating deals than raising capital. It’s suited for family offices and those who don’t need to raise money as much as others. If you’re in this group, this type of fund structure may be for you. (serena williams fund)
Breakdown:
Part 1: Contact Information
Business Address and Mailing Address
- Explanation: This section shows where the business is located and how to contact them.
- Benefit of Raises.com’s Network: Raises.com’s network of paralegals can ensure the correct and complete business information is included, making it easier to reach the company and improving the credibility of the document.
Part 2: Official Notice
SEC Form D
- Explanation: This is an official notice about a company offering securities (like stocks) without registering them, following special rules called Regulation D.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can help structure and file these forms accurately, ensuring compliance with regulations and avoiding potential legal issues.
Part 3: Filing Details
Filing Date and SEC Accession Number
- Explanation: This provides the date when the form was filed and a unique number for tracking the document.
- Benefit of Raises.com’s Network: Paralegals from Raises.com can help manage these filings promptly, ensuring that all deadlines are met and filings are properly tracked.
Part 4: Issuer Information
Serena Ventures Fund I, LP
- Explanation: This section gives details about the company offering the securities, including its name, ID number, and other basic information.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can help gather and verify this information, making sure it is correct and complete, which helps in maintaining the transparency and trustworthiness of the offering.
Part 5: Related Persons
General Partner and Investment Adviser
- Explanation: This part lists key people and organizations related to the company, including their roles and contact information.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can ensure that all key persons are correctly identified and their roles clarified, which is important for accountability and investor confidence.
Part 6: Industry Group
Venture Capital Fund
- Explanation: This shows the industry the company belongs to, in this case, a venture capital fund.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can accurately classify the company’s industry, helping investors understand the nature of the business and the investment.
Part 7: Issuer Size
Revenue Range
- Explanation: This part would show the size of the company based on revenue or assets, but here the company chose not to disclose.
- Benefit of Raises.com’s Network: Paralegals can help determine whether to disclose this information and ensure that the decision aligns with legal requirements and business strategy.
Part 8: Exemptions Claimed
Regulation D and Section 3(c)(1), 3(c)(7)
- Explanation: These are the specific rules and exemptions the company is using to avoid full registration of the securities.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can navigate these complex regulations to ensure that the company is correctly following the rules, reducing the risk of legal issues.
Part 9: Filing Type and Duration
New Notice and Duration
- Explanation: This is a new notice for an offering that will not last more than a year.
- Benefit of Raises.com’s Network: Paralegals can help manage the filing process and ensure that all details about the offering duration are correctly reported.
Part 10: Type of Securities Offered
Pooled Investment Fund Interests
- Explanation: The company is offering interests in a pooled investment fund.
- Benefit of Raises.com’s Network: Paralegals can help package and describe the securities accurately, ensuring potential investors understand what is being offered.
Part 11: Sales Compensation and Offering Amounts
Total Offering and Sales Compensation
- Explanation: This shows how much money the company hopes to raise and any commissions paid for sales.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can assist in calculating these amounts and ensuring all financial details are transparent and accurate.
Part 12: Use of Proceeds
Use of Raised Funds
- Explanation: This part explains how the money raised will be used.
- Benefit of Raises.com’s Network: Paralegals can help outline the use of proceeds clearly, making the investment more attractive by showing responsible financial planning.
Part 13: Signature and Submission
Authorized Signature
- Explanation: The form is signed by an authorized person, confirming all information is true.
- Benefit of Raises.com’s Network: Raises.com’s paralegals can assist in the final review and submission of the form, ensuring everything is correctly signed and submitted according to legal requirements.
