EXPERIENCED REAL ESTATE FUND ATTORNEYS
Launching a private real estate fund involves navigating an array of regulatory complexities and business challenges. A real estate fund encompasses unique securities, regulatory, and tax issues. Capital Fund Law Group advises emerging and established real estate and private equity fund managers on all aspects of fund formation and ongoing operations. Our attorneys have structured real estate funds throughout the United States using a variety of structures, investment strategies and jurisdictions.
FLAT-FEE REAL ESTATE FUND FORMATION
Our flat-fee real estate fund legal services include start-to-finish counsel with all aspects of launching a real estate fund. Our services include structuring the offering terms, preparing the disclosure documents and agreements, filing the federal Form D and assisting with investment advisor registration. We also assist our clients in their capital raising efforts by providing introductions and resources to guide clients toward capital sources that we have found to be effective for emerging managers.
NATIONALLY RECOGNIZED EXPERTISE
We have authored numerous industry publications, including white papers, sample PPM document excerpts and blog posts dedicated to helping emerging managers understand various aspects of forming real estate funds, private equity funds and other alternative funds (scroll below to read or download). Our firm has been quoted on securities law topics in some of the nation’s leading financial publications, including Forbes, Entrepreneur, and Business. Capital Fund Law Group was recognized for its exceptional investment fund legal expertise by Wealth and Finance International Magazine’s Alternative Investment Awards in 2014 and 2015.
Call 801-456-3620 or email us to schedule a complimentary consultation with one of our attorneys to discuss the structure, requirements, timeline and costs involved in forming a real estate fund. We will also be happy to answer any questions you have about launching your fund.
Read Our Brochure | An Overview of Capital Fund Law Group and its Investment Fund Services
This brochure offers an overview of Capital Fund Law Group and its investment fund services. It also includes what some of our clients have to say about Capital Fund Law Group. Click the button below to download the brochure on a mobile or desktop device.
REAL ESTATE FUND RESOURCES
Forming A Real Estate Fund | a White Paper
This white paper discusses some of the key considerations in forming a private real estate fund, including strategy, structure, and investment terms.
Real estate securities offerings span a broad continuum of size and complexity. At the largest and most complex end of the spectrum are non-traded and traded Real Estate Investment Trusts (REITs), which are pooled investment vehicles requiring a large number of investors to satisfy regulatory and tax requirements and generally requiring a substantial asset base to justify the costs of formation and operation.
The private real estate fund strikes a balance between the two ends of the spectrum, enabling a sponsor to raise capital in a pooled fund without being constrained to do successive securities offerings on a deal-by-deal basis, and without the complexity, scale and substantial regulation of forming a REIT.
Real Estate Fund Sample PPM Document Excerpt | An Example Document
The Following is a concise model excerpt of a private equity fund private placement memorandum (PPM). The PPM is based on a fictitious closed-end real estate fund investing in multi-family residential real estate in California.
The excerpt highlights many of the fund investment terms that should be considered when forming in a private equity real estate fund. The excerpt is intended to provide an idea of the type of information and level of detail that should be expected in a fund and provide a starting point for discussions with an investment fund attorney.
CAPITAL SOURCE GUIDANCE
Raising capital is one of the most difficult aspects of launching an emerging fund. Many managers with exemplary pedigrees and outstanding track records are nonetheless unsuccessful in their efforts to identify and approach the right capital sources. We advise our fund clients on the legal and business aspects of raising capital. As a professional courtesy to our clients, we also provide introductions and resources to guide them toward capital sources that we have found to be effective for emerging managers.
Our firm has developed relationships with a number of funds of funds that have investment strategies focused on identifying undiscovered emerging hedge fund managers. These funds actively look for new managers that have solid performance and promising strategies. Allocations from emerging-manager focused funds of funds necessarily involved concessions on investment terms, but for the right manager can be an effective way to reach a critical mass of assets under management to attract additional capital.
Additionally, we have relationships with a network of prime brokers, capital introduction platforms, placement agents, and other investment marketing professionals that have been successful in helping raise capital for emerging funds. We guide our fund clients through the process of selecting appropriate investment marketing professionals.
In addition to seeking capital through third parties, fund sponsors should plan to spend significant time reaching out directly to funding sources both inside and outside of the manager’s existing professional and personal networks, particularly to those sources with a particular interest in the fund’s investment strategy. To help guide our clients to appropriate funding sources, we provide them with access to a number of robust investment lead databases, which are maintained by an emerging manager fund-of-funds within our network. These databases include thorough contact information for various capital sources, including: family offices, seeders, endowments, advisors and others.
INVESTMENT FUND MARKETING WHITE PAPER
Marketing an Emerging Investment Fund | a White Paper
“There are significant risks involved in marketing a hedge fund, both from a regulatory and investor disclosure perspective. Care must be taken when conducting marketing efforts to avoid running afoul of regulatory restrictions and overstepping disclosure parameters. Legal counsel should be involved at each step of a fund’s marketing process.
In addition to the legal issues involved in marketing a fund, there are practical, business considerations that can be outcome determinative when launching a fund. In our work with funds of varying sizes, backgrounds and strategies, we have seen a number of factors that influence a fund’s marketing success. This white paper addresses both the legal and business issues that fund managers should deal with when raising capital for an emerging fund.”
OUR LEGAL COUNSEL HAS BEEN QUOTED IN LEADING FINANCIAL PUBLICATIONS, INCLUDING FORBES, ENTREPRENEUR, BUSINESS, AND OTHERS. CAPITAL FUND LAW GROUP HAS BEEN RECOGNIZED FOR ITS HEDGE FUND EXPERTISE BY WEALTH & FINANCE INTERNATIONAL IN ITS ALTERNATIVE INVESTMENT AWARDS.
“According to John S. Lore, Esq., owner of Capital Fund Law Group, PC, ‘When selecting service providers, including an attorney, administrator, and auditor, the management should consider the professional background of each provider. The level of quality of the service providers says much about the quality of the corporation’s management and business plan. Before smart people will invest in or purchase anything they seek signs of competence and stability from all tiers of the organization.”
“An accredited investor is an investor that meets the income or net worth tests established by the SEC,’ says John Lore, managing partner of Capital Fund Law Group. ‘For individuals, the investor must have a net worth or joint net worth with his or her spouse exceeding one million dollars or meet a $200,000 per year annual income threshold ($300,000 if combined with spouse).”
In 2014 and 2015, Capital Fund Law Group was recognized for its investment fund expertise by Wealth and Finance International, a global investment publication, in its 2014 and 2015 Alternative Investment Awards.
OUR CLIENTS ROUTINELY COMMENT ON THE DEPTH OF OUR KNOWLEDGE, THE LEVEL OF SOPHISTICATION, AND THE TIME WE TAKE TO PROPERLY UNDERSTAND AND IMPLEMENT THE CLIENT’S UNIQUE OBJECTIVES. BELOW IS A SAMPLING OF OUR CLIENTS’ PERSPECTIVE ON OUR SERVICE.
“John is one of the more thoughtful and detailed attorney’s we have had the pleasure to work with. He pushes us to be a better company and we have total confidence that once he has analyzed an issue and provided an opinion, it is the correct one. I’d highly recommend him to a new or experienced fund.”
“My experience using Capital Fund Law Group to launch my hedge fund has been outstanding. While I had access to other legal talent, using a true specialist in the space proved to be extremely valuable for my firm. John Lore and his team skillfully guided my team through the necessary steps to get started with the right structure and terms. I value the ongoing relationship I have with this outstanding legal firm, and continue to benefit from the high value added by John and his team in a complex and changing regulatory environment for financial service firms.”
“John Lore and the Capital Fund Law Group team were an extremely professional solution for the legal side of my macro hedge fund launch. Their expertise in all matters relevant to the drafting of fund documents and the applicable statutory requirements was evident throughout the process of my launch. I would recommend their counsel highly.”