A guide for emerging funds
Targeting investors, diving into fundraising and more
Since the start of the pandemic, commercial real estate investors have been waiting on the sidelines, eager for an opportunity to dive back into the market. Now, as the economy once again heats up, investors are searching for the best funds to trust with their capital.
Burgeoning fund managers are noticing the renewed interest in investment, leading to a rise in emerging real estate private equity funds. But starting a new fund is not as simple as putting together a team and courting interested parties. It is a complex, multistep process that requires consideration of many important factors before the first round of fundraising kicks off.
“Whether you're raising a $25 million fund or a billion-dollar fund, there are many things that need to be done in terms of defining strategy, raising capital, deploying that capital, managing risk, complying with regulator issues and so much more,” says Tom Green, national real estate assurance leader for RSM.
Green and his colleagues at RSM often get questions from clients—those just starting out in emerging funds as well as seasoned professionals—about best practices for putting together a successful fund. Now, as the real estate market is poised to welcome new investors, the RSM team has put together a guide for emerging real estate funds.
In this guide you will discover how to:
- Determine your strategy—and be prepared to pivot
- Target your investors
- Dive into fundraising
- Build a structure
- Keep core strengths in-house, outsource the rest
- Demonstrate corporate governance
- Consider the growing influence of ESG
- Ensure transparency for investors