[LA_Banker]

One doesn't exactly "start [their] own private equity firm." Tens of (more often: hundreds of) millions of dollars must be raised and even then, they must bid (or acquire by other means) on companies.

Anyone with a net worth above $1mm can become a venture capitalist, given that VCs deal with earlier stage companies which, as a result of their youth, are happy to take small checks for minority investments.

Private equity, because it deals with mature companies and (more often than not) involves controlling stakes, requires very, very large checks. And because investors don't like an undiversified portfolio, the PE firm must have the means to write many very, very large checks.

This isn't an undertaking that just anyone can do. Of course, if someone has the means to raise hundreds of millions of dollars, has a nose for investing, is experienced in both buy-side mergers & acquisitions as well as the operations of a company in a given domain, then co-sign your advice.

Though index funds or an advisor would be much less risky for someone with those means.

[anonbanker]

oh come on, Don't pretend it's hard to do; you can start a private equity firm to own your house and car. Sure, it won't have the same muscle as the larger ones, but it isn't impossible. just draft the documents, and agree to underwrite (or get a corporation to underwrite!).

[LA_Banker]

An LBO of a home is called "getting a mortgage." And yet, one's car or home isn't exactly a share-issuing company. You can form a company to own it – but that's not private equity.

Are you familiar with what "private equity" is? Note that "private equity" is distinct from "private" "equity."

[anonbanker]

One's car or home isn't _normally_ owned by a share-issuing company. are you saying it can't be owned by one? Pretty sure there's a well-known Mayer Amschel Rothschild quote about owning vs. controlling.

Private equity is an asset class. equity securities and debt (such as, oh, unpaid medical bills, and the right to collect on them) can be purchased as well as corporations/corporate debt.

Are you sure you understand what I'm saying?

[smallnamespace]

First off, no bank will underwrite your mortgage for your house if you will own it under a corporate name. It's just too unusual for the bank to think about, and also they lose the ability to place a lien against you personally.

Second, what exactly do you accomplish by doing this, except paying a bunch of money in incorporation fees and drafting documents?

There's a reason why corporate shell games are usually played by people with relatively deep pockets: all the benefits that come from using corporate law require lawyers and accountants, and those are expensive.