What Is a Fund of Funds Offering? | Securities Attorney Explains

Gene Trowbridge, securities attorney and former syndicator, explains the fund of funds offering: how a sponsor pools investor capital into an LLC that invests across multiple syndications, what documents it requires, and how it compares to acting as the syndicator or coming into a deal as a co-GP. Chapters (timestamps) 0:00 Intro: what is a fund of funds offering 0:47 The three ways to raise money 0:56 Path one: be the syndicator 1:41 Path two: the fund of funds approach 2:37 Path three: co-GP 3:20 Let us look at the structures 3:23 The traditional syndication deal 4:06 How the fund of funds is structured 5:30 How the co-GP comes in 6:55 Using all three in one deal 8:14 The benefits of a fund of funds 9:32 Easy management: one K-1, one check 10:03 How to reach the firm What you will learn • The three ways a sponsor can raise capital, and where the fund of funds fits • How a fund of funds pools investor capital to invest across multiple sponsors' deals • Which documents a fund of funds requires (PPM, operating agreement, subscription agreement, plus extra disclosures) • Why the structure appeals to sponsors whose strength is raising money, not sourcing deals • How investors gain diversification and access to deals above their individual minimums • Why management stays simple: one K-1 in, K-1s out to your investors Free book (It's a Whole New Business, 5th edition, PDF): https://book.tnllp.com Talk to the firm: https://www.tnllp.com/contact Website: https://www.tnllp.com Related videos Coming soon: how to raise capital for a fund of funds offering legally. Subscribe so you catch it. About Gene Trowbridge Gene Trowbridge, Esq., CCIM is a founding partner at Trowbridge Nieh LLP, a former syndicator with 50+ years in commercial real estate, and author of It's a Whole New Business (now in its 5th edition). The firm has served 700+ clients across 1,000+ offerings and $8B+ raised, on a flat-rate fee structure. #fundoffunds #realestatesyndication #syndication #capitalraising #regulationd #privateplacement #commercialrealestate #realestateinvesting #securitieslaw #coGP