Private Equity Fund: Black Swan Team

[Victoria H.]

Just wondering if anyone has invested with the Black Swan Team and how their experience has been to date. They seem like a relatively new sponsor in the private equity space. The newness of their business makes me nervous, but I really like their investment strategy--focused on significant value add SFH and large multifamily assets utilizing the BRRR strategy and holding long term. Their deal structure seems somewhat unique -- no fees at all, 50/50 split of profits after full return of initial capital investment to LPs. The stated goal is full return of capital within the first 5 years of the investment after which they plan to hold the assets for the full 20-25 y, so you remain in the fund getting 50% of the profits and reap the longer term benefits of market appreciation upon the sale of the asset 20+years later.

Any thoughts on the upsides and downsides of such a structure would be greatly appreciated as I'm new to the world of syndications and funds. 

Thanks!

[Jay Hinrichs]

Quote from @Nick Elder:

@Victoria H.I think you'd be better off putting your money into a syndication or fund focused on large multifamily with a 3-5 year hold and with a reputable fund manager. Time value of money is important. What are their IRR (Internal Rate of Return) projections over the 20-25 year hold time? I'd be happy to connect if you'd like to talk through the upsides and downsides. I'm also interested in learning more about this strategy!

ya no kidding not many business's like this operate for decades at least with the original principals.