Fund formation
This area covers how a real estate fund gets organized between a sponsor and its limited partners. It deals with entity choice and the economics each side accepts under the governing documents.
Readers can settle whether a manager should raise pooled capital before assets are chosen or raise equity one asset at a time, and what size and fee terms a first fund can carry. Other questions include whether a property joint venture belongs in an LLC or a limited partnership, and what the partnership agreement should say about carried interest and clawback. Side rights for large investors, such as a seat alongside the fund on single deals, sit here too, as do capital call credit lines and loans secured by net asset value. Each answer points to a document the parties will sign.
- Blind Pool Fund
A blind pool fund commits investor capital before every asset is chosen, which is why many family offices favor single deals with terms set deal by deal. - Blind Pool Funds Versus Deal by Deal Equity
Blind pool funds and deal by deal equity differ in who approves each property and where promote is measured, with a hypothetical worked example for investors. - Co-Investment Rights Alongside a Real Estate Fund
What an LP can ask for in co-investment rights next to a real estate fund, and when those rights can win a hesitant commitment, with a worked fee example. - First Real Estate Fund Size and Manager Terms
How large a first real estate fund should be and which fee, preferred return and carry terms fit a new manager, with an illustrative five year comparison. - LLC or Limited Partnership for a Property Joint Venture?
Compare LLC and limited partnership structures for a property joint venture, including management authority, ownership layers and lender principal thresholds. - Structuring a Real Estate Fund Between Sponsor and LPs
How a closed end real estate fund divides control, commitments, fees & distributions between sponsor and LPs, with a worked waterfall and decision tests. - Subscription Lines and NAV Facilities in Real Estate
Subscription lines and NAV facilities shift capital call timing, lift reported IRR and set repayment limits. A worked example compares IRR against the multiple.