Creating a Private Equity Fund: A Guide for Real Estate Professionals

By: Jan A. deRoos, Ph.D., HVS Professor of Hotel Finance and Real Estate at SC Johnson College of Business, Cornell University and Shaun Bond, Ph.D., West Shell Jr. Chair in Real Estate at Lindner College of Business, University of Cincinnati

Release Date: April 2019

Setting up a private equity fund can be a big and confusing step for many real estate professionals. To help demystify private equity fund formation and operation, the NAIOP Research Foundation commissioned this white paper. It is geared toward those who have limited familiarity with the process and want to learn the basics. The authors provide step-by-step guidance, along with an example of a fund waterfall and a case study of how one company successfully used a series of private equity funds to seek out opportunities during the financial crisis when other sources of funds were limited.

The report examines the following: