Does anyone know if the regulatory/compliance aspect is minimized if you are just setting up an LP that only has one or two friends as investors? For example, is there a requirement to become an RIA because you are managing money for someone else?
I work in a non-investing role at a PE fund. If I were to invite two friends to buy interests in an LP for which I was the custodian of its investing account, I would disclose the holdings of that account regularly to my firm, for compliance purposes. But I'm wondering if I would also be required to become an RIA or complete any other securities licensing? I do have a CFA.