I was responsible for the project acquisition, fundraising, project management, and sale of the asse What made you interested in investing in this type of deal?

As we start to fundraise, what are passive accredited investors looking for in development opportunities?

It can also come in other forms such as member fees, courses and fundraising events.

The hint here is that you usually cannot get financing from any institutional lender on something like this...so you would likely need to go fundraise to execute on a project of this scope. 

The big banks have run the fundraising campaigns for presidents for both parties since the beginning of American history (except for Kennedy).

I would absolutely agree that if you push this idea too far (such as networking for fundraising, making the members incredibly limited with no real power, etc) it would definitely be looked at as a syndication.

The GP’s generally have some active role in the deal as either a fund raiser, deal finder, or operations manager (or some combination of the 3).

No other way to explain a $200M fund raise for storage for someone who’s never done it before (or similar).

Chamber commerce, Economic development boards, Airport authorities, Dock authorities, Social fundraisers, get involved.  

This is significantly easier for ABC capital to manage 1 investor versus 20, so many times especially in very large capital raises a company like ABC capital may offer an incentive to do this.So ABC Capital could offer terms of an 8% preferred return and 80% equity split for an investment of $1M instead of $50k.So now what that operator does is create a fund of funds, and they’ll open up their own fund, lets call it the Main Street Fund, and open up the investment to their investor database to go raise $1M.Then that fund, the Main Street Fund, raises $1M from investors and may be able to offer better returns to their investors because now they’re taking advantage of a better split by being part of the larger $1M investment.So in this scenario The Main Street Fund is the fund of funds for ABC Capital’s syndication.So what are the pros and cons of investing in something like the Main Street Fund in this scenario as opposed to directly with ABC Capital?