MB454: Fund of Funds – With Michael Blank and Garrett Lynch

SHOW NOTES

In this episode, Michael Blank and Garrett Lynch dig into a simple but powerful idea: the Fund of Funds. This approach can change the game for fund managers looking to raise capital and invest in bigger real estate deals. They break down what a Fund of Funds actually is, how it works, and why it could be a great option for scaling up.

Michael and Garrett also talk about the experience they bring to the table at Nighthawk Equity—21 deals, 3,000 units, and over $350 million in assets—and what this experience means for anyone interested in multifamily investing. If you’re looking to understand the basics of a Fund of Funds, the support Nighthawk offers, and how the numbers shake out, this episode is packed with info you can actually use.

NighthawkEquity.com/fund

Key Takeaways

Who This is For

Ideal for fund managers or those who can raise $500K+ in capital.
Best suited for investors looking to scale their capital-raising efforts.
Designed for those interested in a long-term partnership with a proven operator.

What is a Fund of Funds

A Fund of Funds pools capital from multiple investors to access larger multifamily assets.
Fund Managers create a compliant, separate entity for each fund (SPV) with more control.
Offers a streamlined structure that allows for SEC-compliant, efficient capital raises.

Why Nighthawk

Nighthawk has 34 years of combined multifamily experience and 21 deals to date.
Track record includes $350M in assets and over $95M raised from 500+ investors.
Full-time corporate staff dedicated to asset management, construction, and investor relations.
Provides “Done For You” setup, legal compliance, and fund administration services.

Partnership Economics

Enhanced economics for Fund Managers with access to special class shares.
Example: Special Class Shares offer a 7% preferred return and 80/20 profit split.
Recommended fund structure targets 9-11% compensation on total equity over five years.
Fund Managers benefit from ongoing support in investor onboarding, distributions, and K-1s.