Indiana University Kelley Business School students will raise $4.2 million to create a real estate private equity fund to be managed by them and future associates and used to invest in existing and future developments.
It’s called Sample Gates Management Inc. and is the nation’s largest student-managed real estate private equity fund. More than 30 real estate companies, financial firms, and private investors, including Kelley alumni, were among her early investors in the fund.
“We want to be clear that this is an investment fund, not a donation,” said Al’s real estate director Doug McCoy and Shari Oak, an education professor of finance who directs Kelly’s Center for Real Estate Studies. . “Our students turn and invest in real estate transactions under the guidance of our investment committee and faculty. These transactions are rigorously vetted by practicing and respected professionals who are alumni and fund investors.
“This is something that we hope will continue to be successful for decades to come, and we believe it will be a huge part of student growth. This is at the heart of our real estate program. Breaking down walls, the integration of the two allows students to graduate as seasoned professionals.”
The fund was born out of a student initiative over a three-year process. Patrick Engels, a 2021 Kerry graduate and now working as an analyst at an investment management firm in New York, approached a professor in the school’s real estate program during his freshman year.The idea was inspired by an early supporter, J. Timothy Morris, founder, and partner of Proprium Capital Partners, who said: Faculty Advisor Tom Peck is also Chief Investment Officer for Hageman Group.
IU Real Estate Private He is the student representative for his program in Equity, Will Huber, a senior from Batavia, Illinois, majoring in finance and real estate. “We are one of the few programs like this that are run by students, and we funded it ourselves.
“Most of our investors are IU alumni who support the program and give us experience and responsibility that most students like us cannot have. These people are the CEOs and presidents of these companies. The fact that they responded to us with great interest and wanted to join our pitch and learn more about the program is very encouraging. “
Student-run private equity funds are more common at the graduate level, where funding is often provided by universities or individual donors rather than investors. Unlike funds tied to courses where he makes investment recommendations once a semester, Sample Gates Management funds are more liquid as students manage assets, make investments, and raise capital throughout the year. . All of this is done under the direction of the Fund’s Investment Committee and Kelly Faculty Advisor.
That year, students introduced and met potential investors at events in Chicago and Indianapolis. McCoy says the overall experience, which includes gaining a working knowledge of securities law and customer management, makes Kelly graduates attractive to top companies.
“What sets us apart from other programs across the country and brings people to Kerry is the immersion in this whole world of real estate private equity,” McCoy said. This is for students. This is about learning. This is about the market and they can land in all the best places. “
McCoy said the student’s success with his sample Gates His Management Fund indicates a growing interest in studying Kelly’s properties in Bloomington and Indianapolis. This fall, 380 students are studying real estate at Bloomington, of which 115 are the only students majoring in real estate. In Indianapolis, 72 students are studying real estate together, 31 of whom are participating in a new commercial real estate workshop.
In December, the Indiana State Board of Higher Education approved a 15-credit hour undergraduate real estate certificate program at IUPUI beginning in fall 2023. Student interest is growing at Bloomington’s Real Estate Club, which grew from 250 to about 500 members this fall from 250 members. Then you can start working on the fund.
Malik Carr of Indianapolis, Co-President of the Real Estate Club and Senior Specialist in Finance, said: “Building a new apartment complex, shopping mall, shopping mall, or industrial building creates jobs and makes the area a better place. Investing in real estate property has a positive impact on the lives of many people. may give That’s what drew me to real estate. “