Hello everyone and welcome to the Capital Stack by Yardi. In this video series, we dive into the latest market trends in real estate with a practical take on how software can and is helping investment managers oversee and grow their capital stack. In today's edition, we'll be focused on the latest in capital markets, including some insights into how investment managers can think about finding investors who match their investment strategies and how those investors or LPs can find and assess quality investment opportunities amongst the gps. I have a special guest here joining me today, uh, Alexi, who has led the charge in starting a new platform that helps LPs and GPS match and find each other. Alexi, you wanna introduce yourself a little bit further? Yeah. First of all, thanks for having me on. It's really a pleasure. Um, I think we found ourselves, uh, you know, we met through you actually being a user, which is always cool. I think somehow you found, uh, the website registered and over time we got to know each other. So it's, it's really awesome to be here. Uh, background wise, uh, I guess I used to be in the institutional world, worked for a public reit, uh, that is now private, uh, entered like the GPLP universe and just realized that, um, I guess to keep it short, very inefficient marketplace for was a lot of capital flowing in and out, and I just felt like there's a lot to do there. Initially I started advising LPs directly, and more recently, really as of January, what was the first deal that I sent, I started something called GLP match.com, which is exactly what it sounds like. It's a, it's a matching platform. GPS post deals, LPs tell us what types of deals they want to see. Um, and they speak to each other directly, like we're not a broker dealer. And, um, yeah, we've had tremendous success so far. I, except the chat about it. Nice. Yeah. Yeah. Thank you so much for joining us today. And, uh, as you mentioned, I, I sort of stumbled upon you on LinkedIn first, and, you know, it caught my eye this, this interesting notion of a tool to help match the GPS and LPs, and selfishly as an LP sort of signed up and poked around and, uh, led to us connecting directly. So appreciate your time here today and, and just kinda the overall exploration of this. Um, so, you know, for the lens of the context of today's conversation, you know, I wanna share with our audience, uh, what is it that you are seeing in today's market that, uh, you know, you're helping to facilitate LT LPs find gps and deals with those said gps. So, you know, you mentioned a little bit about GP LP match. Um, maybe just talk a little more about how the platform works and, and kind of what you're doing with that platform. Yeah, for sure. So, um, LPs register, it takes about two minutes. They tell us, um, they, they can get as granular or as broad as they, as they'd like. So for example, you could have someone that says, I want to only see funds that invest in Florida, um, doing multifamily with an 80 20 split or more, for example, right? Or someone might say, I want to see industrial in Texas 80 20 split at least a 5% co-invest, uh, 6% plus pref, right? You, you can see sort of like the iterations of all the things that they can select. So there's like roughly 20 fields. Um, they can select as many as they'd like or as few as they'd like. They can change them at any point. And all of those filters are live in our database. Um, a GP submits a deal, uh, deals do have to be 5 0 6 C. Um, and, you know, I i I take some time to just review it, uh, in terms of like accuracy to make sure that if, you know, um, if they put in that it's an 8% pref, that's what the deck says, you know, sometimes there's errors or whatever. Um, I spend a little bit of time on track record, which is like one of the, um, I would say more complex filters that the LPs set. Um, and then I like quite literally click a button and an email goes out, uh, to LPs, uh, including yourself, right? Mm-hmm. Um, that, uh, essentially sends the, the deal to the people that wanna see it, like they're requested to see deals of this type. Um, if the LP is interested, um, they can reach out directly to their gp. Uh, we're not in between in any, any way shape or form. Um, in fact, well, we recently rolled out an upgrade where you can literally click a button and get introduced. You if you're too lazy, you know, if you're like, uh, I guess on your, on your boat, um, you know, on your summer vote and you're just too lazy to draft an email, you can click a button and we've had a ton of users use that. Oh, nice. Nice. That's interesting. Um, you know, you're not, you're of course not the first platform out here done something like this, right? And, um, there are also intermediaries such as consultants out there who help connect GPS and LPs. Um, so I think you kind of answered this question a little bit, but I just wanted to kind of say or ask, you know, what, what is the thought or the gap in the market that you saw that really sparked you to start this? And, you know, how do you feel this is different than maybe some of those other platforms are out there, or, or how a consultant might go about finding a G GP and LP match? And, and maybe just last point to the question, you know, what's the contextual difference between, you know, that high net worth individual lp, uh, who may be sitting on their boat enjoying right clicking? Yes, yes. Y'all want an interest in this GP versus your institutional investor, right? So more of your, your company's institutions, pension funds, et cetera. So multi-part question for you to think about there. Yeah, so I, I'll do the second part first, I guess. Um, I think candidly, uh, the, the larger the check size, and we've actually like proven this out with data at this point. Uh, I recently ran like a pretty large study on our data, and it's like abundantly clear that the larger the account, meaning as you go from like retail to family office to allocator, they have more and more filters set. Uh, meaning they have a much more specific, uh, a much more specific mandate, which kind of makes sense, right? Like sort of a retail person might not be sure exactly what I'm looking for. Let me like look around, um, you know, someone sitting at Apollo or you know, wherever, um, knows exactly what they're looking for more or less. Um, and, you know, they sort of know what the investment mandate is of the investment committee and like, they just don't want to see two to four deals a day, right? Um, that's, I I think that's the shortest answer on that. I, I think on the first, um, I think to be candid, the the biggest missing piece, and I guess that's our thesis at least, is there's a universe of people that wanna place capital. There's a universe of people that need capital. Uh, both currently have like a really hard time finding each other, right? Um, some of that is, um, for good reasons, perhaps because it's a private market, right? But some of it I would argue is for just inefficiency reasons, right? I mean, there's no place where someone can go and say, Hey, like, I want to see these types of deals and get sent to deals that matches exactly what they wanna see, right? Mm-hmm. And, and if, you know, if their criteria's a little bit too loose, they can tighten their criteria and instead of getting two deals a day, they can get two deals a week or two deals a month, right? Mm-hmm. Um, so I just personally, I saw like this really big gap and we're building around that. Um, and you know, even since you and I scheduled this, um, we've actually branched out to like a, a more broader focus, which is many gps, I'm sure you guys do work with a lot of these people. Um, you know, they don't necessarily have a deal, but they're like, I I wanna actually speak to LPs prior to, uh, having a deal, because once there's something under contract, there's just like not enough time. Mm-hmm. And on the other hand, we've also heard from a ton of like insurance companies, allocators of all types, family offices that say, uh, I love your platform, but, but by the time, like there's an active deal, like I, I gotta meet the guy in person to give him a million dollar check. I can't like do that in two weeks on demand. Mm-hmm. You know what I mean? Mm-hmm. Mm-hmm. Um, so although it's helpful to see a deal to start a relationship, it's not enough time. And so basically what we've started to do is, um, uh, pave the road, and I'll explain what I mean, but we're paving the road to sort of like offline matching, which is like LPs, uh, actually in a few days I literally just sent an email, like, GPS can set, uh, a very detailed profile about themselves on the platform. LPs including yourself pretty soon, will be able to search for the GPS and say, Hey, like, um, I would like you, you can either like type it through text or used our filters and you could say, I would like multifamily developers investing in Dallas, um, with 10 years of experience, right? And so you'll literally get a table output of like, here are the best people based on your search. Um, and, um, those folks might not have a deal yet, right? But, uh, the matching will happen prior to having a deal because the LP knows what they're looking for. Mm-hmm. And so that's, that's where I think the platform is headed. We're obviously doing deals, you know, sending two to four deals a day still, and that's sort of like the crux of the platform, but the question is how do you build around that? Um, and accommodate, for example, sponsors that do 5 0 6 b sponsors that only want to do JV deals and not necessarily syndicate $500,000 at a time. And so we're, we're trying to find solutions for all of them. Mm-hmm. Yeah, it's interesting, and, and you mentioned what you've added nuisance last spoke, so sort of building a relationship before a deal even exists. And that's, it's probably not too common if, if at all happening in the market. So that's, uh, I'm sure, sure. Well served by what you guys are doing, and interesting to see expand that platform in that area. You know, as, as we were kind of talking about this before, I sort of made the joke of it sort of feels like a dating app in a way, right? Kind of swipe left, swipe right. And, you know, joking aside, I think the, the, the platform you surface is great. And even as you just mentioned, you know, building a relationship before a deal even exists, I think is so valuable, um, for any type of investor, whether institutional or lp and, you know, by you guys verifying some of that information you mentioned just the accuracy of, of data and decks and all that. But even just looking at track record and making sure it's, it's accurate, I think it's huge, right? Because it really allows the LP to focus on strategy execution and do the deal economics, you know, fit into our investment portfolio, is it fit into the strategy that we're trying to execute on, or, or the returns that we're trying to achieve? So really, really interesting stuff. Let focus, let folks focus on the things that they need to spend their time on really. Um, so shifting gears a little bit, uh, you know, as we were talking about the platform that you have and some of the tools you have that can help gps, you know, to ensure they're optimizing how they're sharing or marketing their deals, you know, so, so maybe without going into necessarily the weeds of all the product features I wanna talk about with some of those tools and features, what are some of the themes that you're seeing, the trends that you're seeing that you can perhaps leave with gps? So any GP listening today, what's some kind of practical guidance that you might share with them that you're seeing as, as trends from some of those tools that your gps are using on the platform? Sure. Um, I think probably a three-pronged approach. So the most common questions I get several times a day are how can I reach more LPs? And that, that, I mean, that's specific to our platform, but I think it's a global question, right? Mm-hmm. Meaning every GP is wondering the same question. Sure. Um, uh, the, the second one is, um, how do I compete relative to my competition? Meaning how are my terms relative to other people? Um, and number three, uh, most common question is like, do you have any feedback on the deck? Right? So I'll, I'll go quickly through each one. So on the first one, I would just say that to, to a surprising degree on our platform, but again, I think this is true about the population. Um, splits have sort of changed, preps have changed, like lp, lp, um, like demand side economics of expectations have moved quite a bit over the past two years, right? So, uh, the broad statement I would just give is like, the better economics you can give obviously means you can probably attract more capital. And that's a trade off. Like, I'm not, I'm not, um, you know, telling people what to do, but that's a decision you have to make. Like, do I mm-hmm. Take 10 meetings and close one, or do I take 10 meetings and close five? Um, and, and how do I sort of account for the time value, uh, the, the, the value of my time, so to speak, and those additional meetings versus the promote that I can get, uh, on slightly agre more aggressive terms, right? Mm-hmm. Mm-hmm. Um, that's on the first one. On the second. Um, I think, uh, you know, we've sort of developed, uh, our own internal mechanism of, well, quite literally, like giving comps to gps of like, you know, um, here's how your multifamily deal, whether it's a single asset deal, portfolio deal or a fund compares to 10, 20 other deals that we send in the past few weeks, right? So you get like a very live look, uh, against your competition. And, um, you know, I think economics are pretty simple. Like if you're more experienced, um, and perhaps you actually have some room to like be more aggressive, we've had some of those responses. Like GPS will look at this comp table and say, wow, like, I'm actually almost too nice to my LPs. I'm like leaving some room on the table in terms of act fees maybe, or my splits. Mm-hmm. Many times, at least in our case, uh, especially like on the emerging manager side, what tends to happen is people come to us from, Hey, I, you know, I've done five, 10 deals with friends and family money, kind of, kind of running out of capital to scale. Uh, can you help me? And in on almost all of those cases, what they find is the opposite, like friends and family money comes at much more favorable splits than market, right? And they still have, and they sort of have to make that trade off of doing less deals at more favorable splits or doing more deals, but coming closer to market in order to, um, to raise. Um, on the third, just in terms of deck feedback, um, I mean, I, I think this is kind of obvious, but like, um, I would certainly, I mean, this is free. I would certainly like pass a deck through like Chad g, PT or something, right? Um, you would be shocked. We, we developed like a whole large language model internally that gives feedback on every single page. Um, but you'd be shocked at just like how much a simple LLM that's available to the public and free might catch in terms of like inconsistencies or, uh, grammar issues or whatever, right? So you should definitely do that. Um, and more broadly, I'm of the opinion at least that decks sort of like speak for themselves in a sense. Like your deck should stand on its own in terms of like your background, what you're doing. And if it's not clear, people will just end up putting it down. So it, it, it's extremely worthwhile, especially on a larger race, to spend some time building a proper deck, making sure that it is complete as funny as it sounds, chase, like make sure the address is in there. You know what I mean? Like just a very simple thing sometimes get missed. Um, and when LPs are busy, they're just like, eh, like come on, you, you can't like, have such a simple error, uh, you know, and they just move on. Yeah. I'm sure there's always that happy medium of is the deck too long, too short? Of course. Yeah. Do I have too many color graphics? You know, am I focused on, you know, that versus the, the quality of the, the data or the information that investors actually looking for. So kinda an art more than a science sometimes for sure. Um, yeah, it is interesting with the, the prep split, I think it's a question folks always have, right? And especially those, those, like you said, inve, those gps transitioning from friends and family or as we're looking to scale and sometimes don't dunno what they don't know. So that's, that's helpful insight and hopefully some practical guidance for some of our folks listening. Um, so aside from maybe some of those points, are you seeing any themes in types of vehicle structures or investment strategies or any kinda characteristics about deals that are, are gaining traction right now? Uh, you know, we've obviously got a shift in the market taking place between interest rates and just changes the economy. Anything that you're seeing in particular catching the eye of LPs more? Yeah, I'll tell you three interesting things. So one, I've seen a ton of demand from GPS to do cog vehicles, meaning they're trying to raise cog money, essentially. Mm-hmm. Mm-hmm. Like as part of, for their co-invest, uh, I've seen a ton of that, like all of a sudden out of nowhere, like six months ago, maybe one request a month, now it's like one a week. Um, the second thing I would mention is, um, seeing far more sidecars than I've seen in the past, and I tend to actually encourage them. So meaning when someone submits a fund, my first question is usually like, great, happy to send the fund totally free, let us know how it goes, right? But one of my questions is always like, Hey, why don't you decide cars like a general, generally speaking, many allocators and LPs actually prefer seeing what they're investing in. Mm-hmm. So take a little bit of the fund, use that to fund, I dunno, 30, 40, 50% of this property, uh, but put a proper deck together and almost treat it at a single asset raise, right? Mm-hmm. Um, and that sort of like provides some more diversification for your fund investors allows you to meet some more investors on the LP side for, you know, for those who prefer single asset or portfolio type deals. Mm-hmm. Um, I think that's a really nice way of like, um, helping, uh, your yourself like reach moral peace, right? Because there's like almost a binary preference of like, sure, some RIAs can only do funds, for example, while some allocators won't even touch them, right? Mm-hmm. And I think the same is generally true in retail. Um, the third thing is, um, I've seen, uh, I think like, uh, chase like drastic changes in, um, so if you move back like a year, which is more or less when I started like prefs splits co-invest, meaning LPs, LP expectations that are set as filters have very clearly gone up, um, on the supply side. In other words, when I see a deck submitted, a GP can send whatever they want, right? And I can also see a very clear trend line of, uh, gps giving better terms over time to LPs if you sort of like, uh, do a time series on that. Mm-hmm. Um, but what's interesting, if you use Zoom in and start like looking at stuff by property type, there's very drastic changes. So for example, like, uh, I just ran the data recently, like an average split on a multi deal is 70 30 across I think like 125 deals that we've sent. Um, an average split on like an RV park deal is like well in the low sixties, right? Um, and, and, um, sa same, same with like mobile home parks are training, lower RV parks are trending lower. Um, so I I I think there's like some segmentation that the gps need to be aware of, like LP demand for different property types is different, and that naturally because of demand and supply, uh, might mean that you can get a higher promote in one versus the other. That's interesting. Um, I wanna go back to your sidecar statement. So just to maybe drill in a little bit like what a pitch deck might look like. So instead of just saying, here's the fund, here's the economics of your position, it might also say, here are not just the strategy of the fund, but here's like the 10 assets or the 20 assets that it's invested into, or we'll invest into so that way they can sort of pick and choose different assets within a para side cars. Is that what you're thinking? No, actually. So that's like more of like a customizable fund. I think those are really complicated. Just, I don't know my opinion for what it's worth. Mm-hmm. I actually mean, so you, you go out and raise a hundred million dollar fund to buy multi, right? Multi value add, whatever, um, you get under contract on a deal, um, and you know that you can close on that deal out of your fund with no issues, you know, get 70% leverage, 30% equity comes out from your fund. Uh, but then you put together a single asset deck that looks like you're just doing a syndication and in the deck you just say, Hey, like th our 30% co-invest in this deal is coming from our fund. We're looking to fill the rest, which is, you know, the 70% of the equity, um, with other people. And it, it, it, it, it gives people the benefit of seeing what they're investing in and they don't need to invest in the fund. They can invest in a single asset deal where you have 30% of the equity through, through your fund. But, but you know, again, you can sort of hedge for both types of investors in that way. I see. I see. So you sort of, you have the equity with within the fund if you need it, but if you can get additional investors direct, then then add Exactly. More equity. Yeah. Got it. Yeah, exactly. Nice. Yeah, it's, I have that cushion to fall back on, right? I still have the fund if I don't go out and get all the capital I want externally from other investors, but, Um, great. Yeah. And I, I think it also creates like a really nice funnel because mm-hmm. In most cases, it's very hard for people to invest into a fund until they know someone. Right. You know, and so they many times they want to like do a deal or two, get to know you and then, you know, and then they drop a million or 5 million or whatever into a fund. Yeah. But it's a nice way to like, uh, introduce yourself. Yeah. I think even especially high net worth individual investors who maybe don't have as much experience or, or as larger positions in, in investments, a fund can sound scary, right? It's a little black box potentially to somebody who doesn't know it. So having a direct asset like that is interesting. Um, so just kinda wrap it up here. Final question for you. You know, what are, what are any other trends or shifts, shifts you're seeing in the market or the economy maybe over the last 12 months? We've kind of covered some of these already, but you know, what do you also see ahead in 2026 and 2027? You know, do you see deal volume starting to pick up? Is it staying steady? Do you see any reason it might slow down? I, I think I've seen, I've definitely seen things pick up, like we're getting a pretty solid two of four submissions a day. Um, we have also seen a pick up in like LP interest in terms of the percentage of people opening our deal emails, engaging with gps, um, you know, so it, it sort of feels like the economy is in a better place than, uh, maybe a, a more, um, stable place, let's call it, than it was like mm-hmm. 12 months ago. Mm-hmm. Mm-hmm. Um, looking ahead, um, you know, I I, I think it's still for a lot of deals, like they're pretty difficult to pencil, you know? Mm-hmm. And, and what's interesting by the way is, I don't know, maybe this is too much detail, but it's like, if you recall one of my comments earlier was LP economics have moved up, meaning they expect more of the, more of, of the upside and, and higher preps and stuff like that. In the meantime, it's like pretty difficult for GPS to get deals to pencil, and you can't really put something under contract if you don't have enough upside in it mm-hmm. To work on it for five years, right? Mm-hmm. So it's like this, um, funky bid ask spread right now, if you will. Mm-hmm. Where like, uh, it, it's just, it's a little bit hard to meet in the middle. You have to give up enough upside, but if you give up all the upside that it's not worth it for you to even do the deal in the first place. Yeah. Yeah. It's a tricky, tricky spot to be in, for sure. Right. Exactly. Yeah. Well, thank you so much, Lexi. Uh, this has been just such an interesting conversation and I hope our, our viewers also gleam some insights, some practical guidance. Uh, maybe a few folks will check out your, your site as well from hearing about this here today. So just again, thanks so much for your time. Um, we're gonna transition for the rest of today's session to my colleague Alexander Lewis, uh, who's gonna give us a demo of one of Yardi's products called Investment Manager, which helps gps track the fundraising, the capital, the investor onboarding, investor, KYC, and a ML process, uh, as they're, as they're subscribing those investors into these deals. Alex, Thanks Chase and Alexi, great insight on what's going on with GPS and LPs out there. Well, from now I wanna kind of pick up where you're leaving off and talk about the next steps that are gonna take place between GP and LPs that are being connected to each other, right? LPs aren't gonna have the ability to find the deals they want and have the GPS responsibility is to provide them the best service that we can. And a system like Yardi's Investment Manager is a perfect tool for that. Okay? So the investor relations team within an organization now have a source of truth for everything going on around their investors and their deals and opportunities, providing a portal to those LPs to access those deals, but also long-term relationship building and documents. Okay? And I have a dashboard to manage my relationship with all of my existing and active investors and find what's going on with them and the different deals that they're in and what their commitments are. But I can also do all of the marketing and emails and follow through with new LPs that I work with. And that's located over here under my CRM section. So my inbox allows any communications that are coming in from my investors, I can see those in here. I'll have some interest in say some new deals. Hey, I've been got a new potential LP that's interested in this deal. I wanna send 'em an email and respond to 'em. Say, Hey, I'm gonna send over a link to you shortly so you can take a look at the deal room and start the investment process. Okay? And we can do that by tracking each individual opportunity that I'm responsible for. So I have an opportunity dashboard that gives me a pipeline of every deal that we're marketing to our LPs, different statuses and stages, the fundraising process that we're in. I'm gonna focus on the Sunnyvale deal that I'm working on right here, right? Uh, total proposals are around 5 million. I have multiple investors that I'm working with on the LP side, and I wanna market to Bob who might have interest in this. So I can shoot out customizable emails that are full on high quality email marketing tool that I can use inside of the software. So these templates use them over and over again. I can drag and drop my images, my language, organize this in such a way that my marketing comes up looking really nice, clean and professional. Okay? Once I have my emails set in place, I wanna send this out to a variety of investors, or maybe I want to target a very specific couple of investors that I want this to go to. For example, add those folks in here, check out and preview the email template that I'm gonna send out to them, verifying exactly what my want my marketing to look like when I'm gonna have to send this out to everybody. And this is what they're gonna see, right? They're gonna be able to understand exactly what they're gonna get inside of this. Okay, everything looks good. Boom. Generate all of my emails in bulk and track this, right? Simple, simple, simple, right? That's the idea behind this tool. Now the experienced for the LP and the investor side is critical, right? So let's take a look like what that looks like, right? So as an investor gets that email coming from me, looks like this, I go into my Gmails and investor lp, here's the opportunity that was sent over to me. And now I can go right from my email and say, Hey, I'm interested in this. Maybe I wanna invest now. Click on that link. And it takes me directly into this digital opportunity dashboard where I can start the process of understanding, you know, what type of deal is this, right? What are the hold periods? What's the funding required? What are the debt, what are the yields on this, the markets that we want to go into? And I can also access all the documents that the GP wants me to see, meaning my, uh, my decks, my brochures, my information about this particular deal that it's really relevant to me. Okay? And then most importantly, I now have the ability to go through a full digital online subscription process that's gonna walk me through a workflow to ensure consistent capture of my information and ease of use for the GPS as well. So as an investor, I can add in my entity, uh, the type of entity it is and commitment amounts that I wanna utilize inside of here. And then from a GPP perspective, I also have the ability to do other things like track whether they are accredited investors with the SEC 5 0 1 right assets over 5 million, uh, are they US citizen living in or outside of the United States? Um, how much are they gonna commit? 500,000 in this case payment information. So tax ID numbers, addresses, zip codes, banking information, all tracked. And then also a personal information questionnaire that you can devise your own to track other information. Like, Hey, do you want to be part of our newsletter? What's your driver's license, birthdate, annual income, anything else you wanna track inside of there? Ultimately, we want them to then sign a fully digital subscription agreement online, right here. Now this is built into yards investment manager. It comes with it, no, there's no limitations inside of here. And it'll easily walk me through as an LP what needs to be done, right? Adding information, checking boxes, signing the document, doing all my initials where I needs to make sure that I'm getting all done. Then I can submit my document for review and counter signatures. Just that easy. Now it's pending. Now the GPS can do their job. They can go back and verify and validate that everything is looking good to complete this subscription agreement. Okay? And ultimately we want these gps and LPs to work seamlessly together, have back and forth correspondence, um, with little resistance as possible. Okay. Cool. Well, thanks again everybody. Hopefully this was helpful. If you have any questions, please don't hesitate to reach out to Yardi and your individual sales rep wherever you need to do, and we'll catch you next time. Thanks a lot.