Blind Funds CAN invest in their own deals as long as…

You can definitely raise money into your blind fund and disclose your investors that sometimes you may want to, or you have the right to invest in one of your own deals. Obviously you have a huge conflict of interest. And so number one, you want to disclose that conflict of interest in your docs, but also you want to make sure that you remember you’re a fiduciary, right? So you’ve got to be in the, you know, you’ve got to be acting in the best interest of your investors. So you can absolutely do it. You just need to disclose it. And what’s really tricky is you want to be very careful with disclosing compensation. If you’re double dipping, that’s fine. Again, you just want to be super clear that you’re disclosing that, Hey, I’m getting, I’m getting an acquisition fee down here. And I made an acquisition up here as well. So disclose, disclose, disclose.

Related Articles