It's true, there are many sponsors in the market, so how do you choose which one to go with? It all comes down to whether interests and investment strategy are aligned, as well as level of familiarity and trust. Some sponsors choose to include their asset management fee second to the preferred return fee to demonstrate to their investors that recouping their investors capital first is the priority before the sponsor receives the asset management payout. Some sponsors will put both sweat equity and their own money on the line, deepening the level of trust and alignment of interests. For us, communication is crucial. We keep our passive investors in the loop via frequent updates. It’s also important to us to return emails and calls to our investors in a timely manner. As you can see, there are many factors at play when deciding on whether a sponsor is a good fit with your personality and interests – and the right sponsor varies from investor to investor.
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