Show Notes
Raising capital has changed, and investors are asking better questions than they were a few years ago.
In this episode, I sit down with Bronson Hill to talk about what it looks like to raise capital in today’s market. Bronson has raised over $50 million across multifamily, oil and gas, debt funds, mobile home parks, car washes, and other alternative investments, so he brings a broad view of what investors are looking for right now.
We talk about why capital was easier to raise when money was cheap, why investors are more cautious today, and how losses over the last few years changed the way people think about risk. We also get into market cycles, debt funds, oil and gas, business acquisitions, and why the best buying opportunities often show up when investors feel the most afraid.
If you are raising capital, investing passively, or trying to understand where the market is headed, this episode gives you a practical look at investor psychology today.
Key Takeaways
Capital raising is harder than it was a few years ago
Cheap money made it easier for investors to write checks in 2020 and 2021.
Rising rates, market uncertainty, and deal losses have made investors more cautious.
Many investors are waiting instead of moving quickly into new opportunities.
Investors are thinking more carefully about risk
Many people learned that a deal can look conservative and still get hurt by market conditions.
Bridge debt, rising rates, and rent pressure created serious problems in many real estate deals.
Investors now want to know how a deal can fail before they care about the upside.
A good capital raiser has to explain both the opportunity and the risk clearly.
Diversification can help investors handle uncertainty
Bronson has raised capital across several asset classes, not just multifamily.
Different assets can perform differently depending on the market cycle.
Precious metals, debt funds, oil and gas, and real estate equity all serve different roles.
The goal is to understand where the risk and opportunity are.
Investors should know why an asset belongs in their portfolio before writing a check.
Debt funds are getting more attention right now
Many investors like debt because it feels safer than equity in uncertain markets.
First-position debt can provide steady income with lower perceived risk.
Some investors are using debt funds in the place bonds used to occupy in a portfolio.
The tradeoff is that returns are usually capped compared to equity.
Good operators communicate when things go wrong
Every experienced operator will eventually face a difficult deal.
The question is not whether something goes wrong, but how the operator handles it.
Investors hate silence more than bad news.
Regular communication builds trust even when the update is uncomfortable.
A strong operator takes the calls, explains the problem, and stays present.
AI can help investors ask better questions
Investors can use AI to review decks, PPMs, and deal summaries.
A good prompt can surface risks and questions an investor may not have considered.
AI should support judgment, not replace it.
The best use is helping investors compare a deal against their own goals.
Operators should expect more detailed questions because investors are using these tools too.