Syndicate

An investment syndicate is used to pool investor funds into a single investment, usually taking the form of a Limited Partnership (LP) or an LLC.

An investment syndicate is used to pool investor funds into a single investment, usually taking the form of a Limited Partnership (LP) or an LLC. As with the broader universe of crowdfunded investing, syndicates allow a group of investors to each contribute a small amount toward a large investment.

  • In Real Estate, the person or company who organizes the syndicate is referred to as the “sponsor”
  • In Angel and Venture investing, the person or company who organizes the syndicate is referred to as the “lead”

Syndicates are more common in commercial real estate than residential real estate.

(“Syndicate” is sometimes used as a verb, for example, “syndicating a deal” means to go find a pool of fellow investors to help raise the necessary capital.)


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