Typical fund management fees are 2.5-3%.

It depends on how many people are running the fund. It's very tough to run a fund at $10 million with, say, 3 fund managers living off of $100,000 each (3% of $10M). A $20 million fund is more viable, but still a challenge.

Office space is pretty reasonable, but rents are climbing and office staff is pricey. Rent, one admin person, and basic office costs like phone and supplies, can easily run $100,000 per year.

That doesn't include travel, conferences, subscriptions, accounting, legal, and other professional services which you can hold pretty low if you try hard.

I think a $20 million fund is the minimum, which would generate $500,000 minimum in management fees, leaving $300,000 for salaries to be split up among the partners/principals.

You can try to run a $20 million fund with two people, but it's tough, particularly once the portfolio starts getting filled with companies.