The surreal experience of turning down capital

Last week, I had three different, current investors separately ask me if I could take more of their capital.

Sadly, right now, I can’t. While we’re deploying a fund, we’re fiduciaries for that fund, so I’m not going to take any capital for rivalrous deals (5+ units, LA County).

And, while I can see some potentially interesting, non-rivalrous deals, as of this minute, none of them is interesting enough to cause me to get off my butt and make it happen.

It’s kind of surreal: When we started Adaptive and buying opportunities abounded, we had a hard time raising money. Now, when it’s super-hard to find interesting things to do, I’m turning away capital.

Hopefully, these people, and the others who have backed us to date, will be willing to back up the money trucks to us when the next great buying opportunity comes around.