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If you’ve ever launched a fund or raised capital deal by deal, you know how rigid the options can be. Traditional blind pools offer scale but lack transparency. On the other hand, syndications offer transparency but can feel like starting from scratch every time.
That’s where the Customizable Fund™ makes its mark.
A hybrid structure that blends the flexibility of syndications with the operational efficiency of a fund.
In this guide, we’ll break down what it is, how it works, and why it’s become a smarter way for fund managers to scale in 2025.
What Is a Customizable Fund™ and How Does It Work?
At its core, a Customizable Fund™ is an evergreen investment vehicle that allows fund managers to raise capital on a rolling basis while giving investors the freedom to choose which deals they participate in.
Think of it as a buffet, not a prix fixe. Investors pick and choose what aligns with their goals all within one fund structure.
Instead of creating new legal entities for each deal or locking capital into a blind pool, you keep it flexible.
If you want to learn more, we have answered all the Customizable Fund™ Compliances and how Avestor executes here: Customizable Fund™ and Compliance: How Avestor Does It
Customizable Fund™ Structure: Simplified and Scalable
Here’s how the setup typically looks:
- You launch one fund under an LLC or LP structure
- You onboard investors once through a compliant offering (506(b) or 506(c))
- Each new deal is presented to investors with full transparency
- Investors opt into the specific deals they want without re-onboarding
With Avestor’s platform, fund managers can manage the entire process deal uploads, investor preferences, ACH transfers, and custom dashboards, without needing to build out an expensive back office.
Benefits of a Customizable Fund™ for Fund Managers
✅ One Fund, Many Deals
No more spinning up an entity every time a new deal comes in. That means lower legal costs and faster execution.
✅ Investors Get Choice
They see exactly what they’re investing in; no blind commitment. This makes onboarding easier and boosts trust.
✅ Built for Scale
As your deal flow grows, you simply add opportunities inside the fund. No need to start from zero.
✅ Lower Administrative Overhead
Fewer entities, fewer compliance headaches, and one investor onboarding flow that scales with you.
If you are still unsure about the Customizable Fund™, then here is our guide to help you decide whether it is the right choice for you: Customizable Fund™ Vs. Syndications in 2025: Which is the Right One for You?
Avestor Makes Fund Management Easier
With Avestor, fund managers can streamline the entire lifecycle from investor onboarding and deal selection to reporting and fund performance, inside a single, customizable dashboard.
It’s designed for modern fund managers who want control without chaos.
Still not convinced?
Read our case study on how Triple Crown raised $4m in 60 days!
Success Case Study: Triple Crown Hospitality
Triple Crown used Avestor’s Customizable Fund™ to raise $4M in 60 days and close two hotel acquisitions. Their investors loved the clarity. The fund loved the speed. And the team didn’t need to spin up multiple syndications to get it done.
Launching Your Customizable Fund™ in 6 Key Steps
- Define Your Investment Strategy
Start with clarity. What kinds of deals will your fund include? Who is your ideal investor? Are you focused on short-term returns, long-term growth, or both? This clarity sets the tone for your legal structure, investor communications, and onboarding.
- Build the Right Team
Launching a fund isn’t a solo sport. You’ll want experienced legal counsel, a fund administrator (if needed), and a capital-raising platform built for Customizable Fund™. Avestor’s in-house team can guide you through both setup and scale.
- Draft Flexible Legal Documents
Work with our attorney to create a PPM, operating agreement, and subscription documents that allow for ongoing capital raises and deal-specific opt-ins. These documents should be tailored to your fund’s goals while meeting SEC requirements.
- Choose a Scalable Tech Platform
Your fund is only as scalable as your back office. Look for a platform that lets you:
→ Onboard investors with KYC/AML & accreditation checks
→ Present live deal opportunities
→ Accept ACH payments directly
→ Manage reporting and performance at the investor level
Avestor was purpose-built to do exactly this.
- Onboard and Educate Investors
Walk your investors through how the fund works. Emphasize that they can pick the deals that align with their goals within one fund, one login, and one set of legal docs. This clarity builds confidence and increases participation.
- Launch and Scale
Start with a few strong deals. As your investor base grows, so does your fund’s capacity. You’re no longer reinventing the wheel with every raise you’re scaling intentionally with a model that supports long-term growth.
Final Takeaway
If you’re stuck between the rigidity of a blind pool and the repetition of syndications, a Customizable Fund™ might be your best next move.
It’s how modern fund managers are scaling smarter, without sacrificing investor trust or operational clarity.
Want to see how it could work for your fund?
👉 Book a FREE strategy call here
Frequently Asked Questions About Customizable Fund™
- Do I need to be registered as an investment advisor to launch a Customizable Fund™?
Not necessarily. Many fund managers operate under exemptions such as the Exempt Reporting Adviser (ERA) status. That said, compliance depends on your structure, investor base, and jurisdiction. It’s important to consult legal counsel or a fund platform that guides you through setup and registration options.
- Can I still run syndications alongside a Customizable Fund™?
Yes. In fact, many fund managers on Avestor run both. Use syndications for one-off, high-impact deals and your Customizable Fund™ for ongoing capital raising and investor retention.
- How do I present new deals to investors inside the fund?
You can upload each deal’s overview, projected returns, key dates, and offering documents inside your investor portal. Once a deal is live, investors receive a notification and can choose to opt in directly, keeping your raise streamlined and compliant.
- What happens when an investor opts into a deal?
Their capital is allocated toward that specific deal within the fund, and all associated returns, distributions, and reporting are tracked accordingly. This approach gives your LPs visibility and control without creating back-end complexity for you.
- Does this work only for real estate funds?
No. Customizable Fund™ can support equity, debt, venture, private credit, and more. As long as your deals can be presented on a rolling basis, this structure is likely a fit.
