News & insights

Everything you always wanted to know about Club Deals

Everything you always wanted to know about Club Deals

Clubdeal.com

ClubDeal.com offers plans, which all grant an unlimited access to exceptional off-market properties, with NO commissions on transactions. Because simplicity is the ultimate sophistication.

Club deals are in strong demand by sophisticated Club investors as they combine many of the benefits of commingled funds, syndicated loans and JVs while aligning interests between like-minded and similarly situated investors.

Sourcing Club deals

The term Club deal is derived from the idea that deals were made among members at the country club, where the wealthy invest in business ventures sourced by other wealthy individuals and families.

It is noteworthy that there is an increasing interest in club deals among family offices and private holdings. Via club deals, family offices can have stronger negotiation power, invest globally through foreign fellow family offices, keep control on their own investment and reduce risks.

Sometimes family offices can contribute to the “club” with their family industry expertise.

What is a club deal?

A club deal is a private equity investment that involves a small group of like-minded investors, usually 2 or more private equity firms, family offices or wealthy individuals, hence the “club”.

A club deal, also referred to as a syndicated investment, is an investment where the investor group formed by a number of qualified or professional investors pools its capital together and invests collectively. The practice allows club deal participants to make larger and more expensive investments than each investor could achieve through its own resources.

ClubDeal-top view meeting family office decision making
A club deal is a private equity investment that involves a small group of like-minded investors

Main advantages of a Club Deal

  • Investors can choose the projects, and the capital they place on their projects of choice
  • Investors can opt-in (or not) to an investment and invest separately through another vehicle
  • Investors avoid numerous intermediaries (funds and funds intermediaries, bank, custodian, broker)
  • Substantially more transparency and control than that afforded by a fund,  unrestricted access to the operating information
  • More targeted results, for a fraction of the cost of traditional funds
  • Maximum efficiency: NO un-deployed Investor funds
  • A savvy Board can be a source of strategic initiatives and ideas (ie. M&A) and stimulate the executive/operational teams to think more broadly and creatively about opportunities

Real Estate Club deals for Family offices

Also known as real estate syndication, real estate club deal is an effective way for investors to pool their financial and intellectual resources to invest in properties and projects much bigger than they could afford or manage on their own.

Competitive advantages of Club Deals

  • Better selection: Collective intelligence will favour the best projects and eliminate the weaker ones.
  • Better sourcing: Leading platforms funnel curated projects, irrespective of their country of origin, generating a wider deal flow, and attracting a growing investor pool.
  • Marketing automation: Online marketplaces embrace marketing automation by integrating emailing power, social community management, and data analysis.
  • Relation automation: Online marketplaces facilitate the transition to full automation by channeling data
  • Funding at every level: time is money, and raising money takes a lot of time. Too much time kills projects.

Learn more

For further resources and references:

ClubDeal-Family office-creat value in real estate-Tianjin sunset

Creating great value in Real Estate

Learn how great value is created in Real Estate to help you make the right decision. Real Estate is a hard asset, with a long timeframe. Choose the correct path.

Compare listings

Compare
简体中文EnglishFrançaisРусскийEspañol