Are you struggling to raise capital for your new fund or syndication? Here’s how to find your first investor.
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Learn how to launch your own private fund or real estate syndication with Fund Playbook. In each episode, Jimmy Atkinson shares insights on syndicating deals, raising capital, and entrepreneurship.
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Episode Transcript Summary
Raising capital for a private fund or real estate syndication is one of the biggest challenges for new fund managers. The hardest part is securing the first investor. Once that happens, momentum builds, making it easier to raise additional capital. In this episode of Fund Playbook, Jimmy Atkinson and Andy Hagans share strategies for finding and closing that first investor.
Start With Your Inner Circle
The first investor should be you. Having your own money in the deal shows commitment and helps build trust with other investors. After that, the next source of capital is family, friends, and professional connections.
Investors want to know that others have already committed before they put their own money in. If you don’t have any capital raised yet, potential investors will likely ask, How much have you raised so far? Starting with your inner circle gives you a base to build from.
The Power of Momentum
Raising the first dollar is the hardest. Once an investor commits, it signals trust to others. People are social creatures, and seeing others invest makes them more likely to do the same. This snowball effect means each subsequent investor is easier to close than the last.
Be Professional and Prepared
Even when pitching friends and family, it’s important to treat the process professionally. Have an executive summary, a pitch deck, and a well-structured investment thesis. A website can also help establish credibility.
Approaching investors with a clear, well-thought-out presentation builds confidence and makes them more likely to commit.
Two Main Approaches to Raising Capital
Once you have some initial capital, there are two primary ways to expand your investor base:
- Direct to high-net-worth investors – This involves networking, attending investor events, and using content marketing to attract investors.
- Raising through RIAs and broker-dealers – These professionals can raise money on your behalf, but working with them involves higher upfront costs and commissions.
Each approach has its own advantages, and the right choice depends on your fund size, target investors, and available resources.
The Importance of Storytelling
Investors don’t invest based on numbers alone—they want to connect with a compelling story. Your track record, values, and investment philosophy should be clear and consistent. A strong narrative can often be the deciding factor in why an investor chooses your fund over another.
Building an Investor List
Raising capital is as much about marketing as it is about networking. A well-maintained email list is one of the most powerful tools for staying connected with potential investors. Other effective methods include content creation through YouTube, LinkedIn, Twitter, and blogs.
Some investors will also find you through crowdfunding platforms and GP-LP matching services. Platforms like CrowdStreet, Realty Mogul, and EquityMultiple can help connect fund managers with investors.
Structuring a Capital Stack
Most deals require a mix of equity and debt. Some funds also incorporate Opportunity Zone capital, tax credits, and other financial incentives. Each source of funding adds complexity but can help get a deal across the finish line.
It’s important to balance creativity with simplicity. While additional capital sources can help, too many share classes or financing structures can create unnecessary complications.
Market Conditions in 2025
Fundraising conditions fluctuate based on economic trends. Some fund managers report that capital has been slow-moving, while others see strong momentum. The commercial real estate sector, in particular, has shown early signs of recovery in 2025.
Interest rates remain a major factor. If rates decline, investor confidence may improve, making capital more accessible. However, the overall fundraising environment is still challenging compared to past market cycles.
Where to Advertise Your Fund
Several platforms allow fund managers to market their investment opportunities, including:
- Crowdfunding platforms like CrowdStreet and Realty Mogul
- GP-to-LP match services
- Investor conferences and networking events
- Content-driven marketing through blogs, YouTube, and podcasts
While advertising can be effective, long-term success comes from consistently telling your story and building relationships.
The Long-Term Nature of Fundraising
Raising capital doesn’t happen overnight. It requires years of relationship-building and ongoing communication. Keeping investors engaged even when you’re not actively raising money helps lay the groundwork for future rounds.
Many successful fund managers find that each raise becomes easier as their network grows. The key is persistence, professionalism, and a focus on long-term trust.
Final Takeaways
- Start by investing your own money and securing capital from family and close connections.
- Raising the first dollar is the hardest, but momentum makes future rounds easier.
- Be professional—have a strong pitch deck, executive summary, and website.
- Choose the right fundraising approach, whether direct outreach or working with broker-dealers.
- Focus on storytelling—investors connect with people, not just numbers.
- Build an email list early and nurture relationships over time.
- Be strategic about structuring your capital stack, balancing creativity with simplicity.
- Stay informed about market conditions, as economic trends impact fundraising success.
- Use multiple channels to advertise your fund, but prioritize long-term relationship-building.
- Fundraising is a long-term game—persistence and credibility are key.
Additional Resources
- Crowdfunding and GP-LP match platforms: LP Match, GP to LP Match, Realty Mogul, YieldStreet, Crowdstreet, Equity Multiple
The next Fund Playbook live stream will take place next Thursday at 3 PM ET. Be sure to subscribe and join the conversation!