Find out how Avestor helped this fund manager deliver a solution that his investors were seeking.
With 20 years of real estate experience and a large network, Jack Krupey of JK Asset Management had built a relatively successful diversified fund, which included around 30 syndication deals.
By building his second fund, a customizable fund, on Avestor’s platform, Jack has been able to give his investors a new level of control without sacrificing the diversification benefits and the accessibility of a fund.
The Challenge: Giving Investors the Chance to Choose their Deals
JKAM’s first fund was a traditional diversified real estate fund. The fund provided investors an opportunity to build a diversified portfolio that spanned multiple investments. But many of Jack’s investors were seeking flexibility to select individual investments to build their own custom portfolio.
“We had pretty good success, but we had a lot of investors who wanted to invest in individual deals, and we didn’t really have an option to do that,” he explained. “I think we were losing some business, because not everyone wanted to be in a diversified fund.”
The Solution: A Customizable Fund on Avestor’s Platform
Jack was determined to give his investors the solution they were looking for, so he decided to launch the JKAM Flexible Allocation Fund on Avestor’s platform. With this customizable fund, investors can select the deals they want to participate in, and choose the amount of money they want to allocate to each deal.
“Now that we’ve built a fund on Avestor, investors can customize their investments more than ever before,” he explained.
The Results: Additional Flexibility for Investors and Sponsors Alike
Avestor’s platform provided JKAM significant flexibility, operational efficiency and cost savings. In less than one year, JKAM launched over 10 investment opportunities for their investors and raised millions of dollars of capital. Within a single fund, Jack was able to offer his investors equity investments, debt investments and fixed income notes. Each investor selected the opportunities they wanted to participate in and built their own custom portfolios, all inside a single fund.
“One of our investors that was looking at something through our fund really wanted to do the deal privately, so we actually made a custom allocation for $250,000. We just logged in, created it, and let them subscribe a few hours later,” Jack explained. “Doing that the old fashioned way through a separate product placement would have taken weeks of coordinating with attorneys, thousands of dollars, and blue sky filings with the local states.”
The JKAM team continues to rapidly grow its customizable fund with more investment opportunities.