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Case Study: BetterCapital Fund

Updated: Oct 26, 2022

Find out how a loan origination business scaled using Avestor’s customizable fund platform

From commercial real estate to loan origination to fine arts, Avestor makes it possible for a wide variety of sponsors to attract new investors, raise capital more efficiently, and even expand into new asset classes and strategies.

Keep reading to learn how one business leveraged Avestor’s platform to significantly increase its pool of investors, and reach $10M AUM much faster than they might have otherwise.

The Challenge: Finding High Net Worth Investors to Fund Complete Loans

Bobby and his partner Max were looking to expand their loan origination business. Their business model focused on finding high net worth investors who could fund complete loans. This limited the number of loans that Bobby and Max could source, making it difficult to scale the business.

In order to achieve the business’ growth goals, Bobby needed to answer three key questions:

  1. How could he attract more investors?

  2. How could he accelerate the number of loans the business originated?

  3. How could he leverage technology to enable people to invest online?

The Solution: A Customizable Fund with Avestor

Bobby quickly realized that in order to bring on more investors, he would need to slice up the loans into smaller investment sizes. He also needed more flexibility in his capital raising process.

Bobby was looking for a partner who understood the complex legal and regulatory environment for capital raising, and who had a technology platform capable of managing his investors and loans and assisting with back-end administration.

While evaluating his options, Bobby found Avestor’s fund management platform, which enabled investors to select the deals they wanted to participate in within a fund.

“Avestor’s solution was creative, unique, and a first in the industry — a customizable fund.”

- Bobby, BetterCapital Fund

The Results: Accelerated Growth and Satisfied Investors

With their new customizable fund on Avestor’s platform, Bobby and Max were able to significantly accelerate their loan origination business. The unique fund model enabled their team to separate capital raising from closing on attractive loans.

The team can now raise capital from investors on an ongoing basis, allowing them to close on new loans faster. They then slice up those loans into smaller amounts, and investors can decide which loans they want to invest in and how much capital they want to allocate.

In this way, investors are able to build their own custom loan portfolios, diversifying if they choose rather than investing a large amount into a single loan.

Recently, the BetterCapital Fund team reached a major milestone, exceeding $10M in assets under management.

The Avestor Difference

BetterCapital is just one of dozens of funds that sponsors have built on the Avestor platform. We take pride in accommodating a wide range of business models and alternative investment types, including:

  • Airbnbs

  • Assisted living facilities

  • Fine arts

  • Hotels

  • Judgment liens

  • Multifamily real estate

  • Music rights

  • NFTs

  • RV parks

  • Self-storage units

  • Startups

  • Student housing

Customizable funds provide these businesses the ultimate flexibility to add new assets and even change their business model or expand into a new asset class, without having to wait for an attorney to walk them through various legal and regulatory steps.

If you’re interested in learning more about how Avestor can help you scale, please schedule a time to talk with us.

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