
The Fund Program is designed to fund a deal pipeline. At the outset of developing a Fund Program, Innovest determines the production capacity by discussing and analyzing the pipeline in detail with a Developer Sponsor and then underwrites the production capacity. Once Innovest determines that the pipeline can be packaged as an Investment Fund, representing approximately 60%+ of the committed fund capital, the Developer Sponsor receives the necessary capital commitments to execute the fund.
The Fund Program arrangement allows the Developer Sponsor to focus on their core competency - pursuing transactions and development. The time spent on shopping around for various sources of capital to close deals on a “one-off” basis can be very time consuming and inefficient for many Developer Sponsors.
Once the Fund Program is established with a Developer Sponsor, the Fund criteria are then identified. Assuming the transactions fit within the Fund Program’s criteria, the closing process is relatively prompt and efficient.
Developer Sponsors know in advance what Innovest is looking for during the closing process, giving the partnership a strong advantage in building funds.