The Case for Retail Capital

Unlocking Main Street’s money at scale

The growth path for real estate sponsors is well-trodden:

• Start by raising money from a network of accredited investors and HNWIs;

• Scratch head when deals get bigger, and the “country club” network gets tapped out;

• Seek Wall Street money—from private equity funds, institutions, and larger family offices.

Making the leap from Main Street to Wall Street comes with perks: a steady equity partner, working capital, and freedom from friends-and-family investor dynamics.

But it’s not all upside. Institutional investors pay lower fees, require stricter reporting, and demand control over major decisions in joint ventures. Raising institutional funds can also mean years-long timelines—especially in today’s market, where decision-making has slowed amid high interest rates and economic uncertainty.

Historically, sponsors faced limited options to grow beyond their “country club” networks without turning to institutions.

But what if there were a way to extend the benefits of that initial network—wealthy individuals who pay the highest fees and rarely demand governance rights—without hitting a ceiling?

Enter retail capital.

It’s important to clarify upfront that retail capital, in this context, is not synonymous with crowdfunding or the domain of scammy syndicators promising unrealistic returns on Instagram. Instead, retail capital refers to investments raised at scale from accredited or high-net-worth individuals through thoughtful, transparent, and professional online campaigns.

These efforts are increasingly being led by high-quality sponsors with strong track records—those who recognize retail capital as a strategic way to scale while maintaining control and aligning with their investors.

This letter explores:

• How sponsors are successfully raising retail capital;

• Examples of standout campaigns;

• Why retail capital makes sense now in 2025;

• The unique benefits of retail capital, beyond liquidity; and

• Creative applications of retail capital that institutional funding often overlooks.