How many GP syndicators are there in the U.S.?

Question

I am working on planning tools that will help GP syndicators, but I am having trouble finding the Total Addressable Market.  Does anyone know where or how I could find out the total number of GP syndicators are there in the U.S.?

Benjamin Arritt · Answer

@Paul Moore thanks for the wake up call.  Missed these responses!

@Badri Malynur  Is this the report? https://www.sec.gov/files/report-congress-regulation-a-d.pdf  If you want to talk off line I'd be happy to do so!Just to be clear, I am only talking about real estate syndications (preferably multifamily), not all "syndication".  Ultimately, I still don't have a number on that.As @Evan Polaski pointed out, there's a lot of data to parse though and try and determine how much of that is for CRE multi-family!

@Bryan Hancock I'd love to talk to you directly about some of these windows of opportunity that may be opening.

Badri Malynur · Answer

Benjamain, I am a a cofounder of a platform that develops a completely new type of customizable fund for capital raising, so we were very interested in the Total Market (TAM) also.  One of the best sources we found was the 2020 SEC report on Reg D funds. Another source I found is Adam Gowers Unleashed book.  Let's connect offline and continue to share data. Maybe there are ways we can work together.

Evan Polaski · Answer

@Paul Moore, sometimes on these forums, you would think the only thing that exists in the world is real estate.

I completely understand the purpose of using general terms in specific ways, i.e. syndication.  But you bring up a very valid point: private equity funds, venture capital funds, infrastructure funds, business formations, etc are all, by definition, a syndication; an act or instance of forming a syndicate or bringing something under the control of a syndicate.

As you noted, the Reg D search while likely covering most real estate syndications, is much broader than real estate, will require a significant amount of time to filter through to track down a niche market.

Evan Polaski · Answer

@Benjamin Arritt short answer is A LOT.  I did a simple Form D search with the term "real estate" in it and came back with 5,836 offerings.  Not every syndicator has "real estate" in their offering name, so there are a lot more.  Syndications have been around as long as people with money wanted to own real estate that was beyond their means alone.

Badri Malynur · Answer

@Benjamin Arritt  yes the link you posted is the correct one, lots of useful info, I think we connected and happy to chat offline,

Paul Moore · Answer

So @Benjamin Arritt, did you feel like these responses were helpful to your quest?

Bryan Hancock · Answer

The market will get larger as the access to opportunities becomes easier.  Reg. A+ and other types of offerings are becoming more common now, which will serve 10X the market that traditional Reg. D offerings serve.  A more expansive view of a 3(c)5(C) fund will afford sponsors the opportunity to comply with regulations and have 2000 or more accredited investors, which will decrease the minimums.  Software will allow sponsors to serve more types of offerings with less manual effort and communicate many-to-one with investors, which will have a dramatic impact on the market and increase the size of the TAM.  A higher ceiling on Title III offerings will bring more types of offerings to smaller investors with smaller contributions feasible through licensed Portals.

To me it is less interesting to observe the current market size and a lot more interesting to ask how big the market can be if the old walls that keep the opportunities private offerings afford are torn down.  Markets respond to new opportunities and are not static.  I am not sure how relevant old data is to a changing market that is still largely responding to the impact of The JOBS Act and subsequent NALs that are still helping to forge the environment.

Brock Mogensen · Answer

Not sure there would be a data source that has that stat.  Syndication is a pretty broad term and can be applied across many different industries.  But definitely a growing concept..

Badri Malynur · Answer

Will, not sure if I can summarize a report dozens of pages long:-) you should be able to find it in the SEC website or you can connect with me and I can send via email.

Paul Moore · Answer

@Badri Malynur. I’d like to hear about that as well.  As stated above, there are many syndicators outside of the real estate realm as well.  And many funds that use a syndication type model.

How many GP syndicators are there in the U.S.?

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