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Commercial Litigation Landlord Tenant Law

When to Raise Equity Capital In a Fund Structure

Gravitating to a fund structure is also no easy task and as with any investment program, the first one is always the most difficult. However, the benefits far outweigh the costs for any experienced real estate investment firm. The primary concern with a fund structure is who will sell the equity in the fund.

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Raising equity capital is one of the most essential functions of a real estate investment and development firm. Many smaller and mid-sized real estate firms are structured with a main operating entity and various affiliate limited partnerships and limited liability companies that own the real estate assets and contain equity investments from various investor groups. An affiliate of the operating company is usually the general partner or managing member of these investment entities.

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