My current catch-22

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There are some deals right now that:

  • Aren’t right for our current fund (because the near-term returns aren’t high enough), but
  • I want to buy (because I think they have a lot of potential down the road)

One obvious solution to this problem would be to buy the deals with non-fund money, either my own or from a JV-partner.

The problem is that doing so might come pretty close to the line from a fiduciary perspective, because I’ve committed to my fund investors that I will give the fund my best ideas.

If I go buy these deals with separate money, the investors in my fund might get the idea that I haven’t lived up to my moral and legal obligations. And that’s not something I’m willing to let¬†happen.

So, I’m going to let these pitches go by. How annoying.

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