Bridger Pennington, who runs two 8-figure investment funds, compares single asset funds and blind-pool funds. Single asset funds are easier to raise capital for but require fundraising per deal. Blind-pool funds let you deploy across multiple properties over 12-24 months but are harder to raise because investors bet on the team, not a specific asset.
Chapters
So what is a single asset fund or SAF? I currently run 2 8-figure investment funds. We're going to answer this question in 2 minutes or less. So there's 2 main buckets of types of funds. You have a single asset fund and then a blind pool type of fund. Let me describe the differences here. A single asset fund is kind of in the name. It's a single asset. It is one asset like a building or a business that we're going to go buy and we're raising money for a specific purpose, a single asset in this firm. The opposite is a blind pool fund. Many big funds operate this way. They're going to say, hey, we're going to go raise $50 million and it's blind. We actually don't know quite yet what we're going to buy, but we're planning on buying 10 real estate properties that fit, you know, XYZ requirements. And we haven't identified them, but we hope over the next 18 to 24 months, we're going to identify these real estate properties and we're going to invest into them. Okay. If you can see it's blind pool for a reason, you're somewhat blind when you're investing in this thing. A single asset fund though has one asset. Hey, we're investing into, you know, 123 Main Street. That's the building we're coming right in. Generally speaking, single asset funds are easier to raise capital for. Blind pool funds are harder to raise money for because there's, you know, more trust in a blind pool on the team. Single asset funds, it's more trust in the asset and timing of the asset. Now the con of single asset funds is it's one asset at a time. You have to raise one and then you got to do the next one. And every time you want to buy a property, you got to find new and, you know, new or preexisting investors. A blind pool fund, you raise the capital once and you can deploy into, you know, a dozen or so deals over the next 12 to 24 months without worrying about trying to go raise capital again and again and again.
