Note: Avestor does not invest in other deals or raise capital for you, but we can allow you to present your deal to our network of fund managers.
While individual deals are generally preferred, we will consider blind pool funds especially if they are not in asset classes other than multifamily. While each deal will be scrutinized, some basic criteria should be met before you can present to Avestor fund managers:
1. Sponsors should have a well-established track record
2. You can offer terms that are dependent on the capital raised. Some recommended tiers are $500K+, $1M+. $2M+. should offer collective terms to Avestor fund managers. These tiers should be applied as a collective entity. For example, if 4 fund managers collectively raise $2M, the $2M tier will apply.
3. Avestor fund managers should be able to get at least 10% of capital raised over the period of the deal. Higher is of course better and will make your deal more attractive to fund managers. This 10% of course does not have to be upfront; it can be over the lifetime of a deal. This could be through special LP terms, GP shares, flat due diligence fee, discounted shares etc. For example, often the sponsor will offer a 9% pref 85-15 split to Avestor fund managers, and Avestor fund managers then offer a 8% pref and a 70-30 split to investors.
4. Note that due diligence fee cannot be a percentage of capital raised and it has to be a flat fee. Co-GP shares should be used only if the fund manager truly has co-GP responsibilities beyond just raising capital.
5. An LP investor that invests through an Avestor fund should get the same or better terms than what they would get if they go directly to you instead of investing through the fund. In the example above, if an investors invests in your deal directly they should get the same or worse than a 8% pref and a 70-30 split. The basic rationale is that an investor does not lose out by going through a fund of funds.
If these terms are acceptable, please email details of your deal and the terms you can offer to Avestor fund managers to firstname.lastname@example.org