A Single Asset Fund raises money for one specific investment, like a building or company. A Blind Pool Fund raises money first, then buys multiple assets over 12 to 24 months without knowing which ones upfront. SAFs do one deal at a time; blind pools build a portfolio.
Chapters
So what's the difference between a single asset fund and a blind pool fund in hopefully 2 minutes or less? So down to the iPad here. Both of these are funds. And if you've watched our channel, you know a fund is a pool of money. Investors are putting money into that pool. Put I for investors. Fund managers over here are drawing from that pool, going and making investments. Whenever those investments make money, the investments flow back to the pool and then get split between the investors and the fund managers, what's known as a waterfall. And in this structure, you have hedge funds, venture capital, funds, private equity funds, real estate funds, they all function like this. It just changes based on the investments they are making. So the big difference of a SAF and a blind pool fund is with these investments, it's kind of in the name. Single asset funds means it's a pool of money here that's going to go buy one asset. They're going to go buy a single asset. They're going to go buy one company like a private equity fund would buy one. A single asset fund would buy one company or they would buy one building. 123 Main Street, we're going to go buy in a single asset fund. It's a pool of money for a single sole purpose. Now the opposite, I'll put it in green over here, is a blind pool fund. In a blind pool, you are raising a fund that's kind of blind. We don't know what we're going to invest into. We're raising $30 million and we plan to go buy 12 properties over the next 18 months. These are not identified yet. So the big difference between a single asset fund is it's one deal at a time. And a blind pool fund is a pool that you're going to go and hopefully buy a group of assets over the next 12, 18, 24 months.
