Syndication

A group of passive investors (LPs) pool capital with an active sponsor (GP) to acquire a larger property.

Common structure: LPs contribute 70-90% of equity for limited liability and passive returns; GP contributes 10-30%, manages the deal, and earns a promote above a preferred return. Typical deal sizes: $5-50M assets. Regulated under SEC Reg D 506(b) or 506(c).