How can real estate sponsors use co-GP partners to scale deals?
Short answer: Meg says she and her first co-GP partner are on their fifth project together, with about $125 million between them. Their first deal gave them a working structure they could reuse on later projects.
On a Family Office Club joint venture and co-GP webinar, Richard C. Wilson interviews Meg Epstein of CA South about using partners to execute deals.
Meg on complementary partner skills
At 16:18, Meg says to choose partners with complementary skill sets, such as a capital provider alongside a sponsor focused on execution. At 16:47, she says the capital partner may want control while the local sponsor handles daily work. (at 16:18)
Meg on securing a deal before approaching partners
At 20:02, Meg says she found a deal, contacted brokers and interviewed potential co-GPs through LinkedIn and other networks. At 20:31, she says getting control of the deal helps establish a specific opportunity for a potential partner. (at 20:02)
Meg on sharing due diligence and capital work
At 28:29, Meg says co-GPs can share due diligence costs, which can reach hundreds of thousands for one deal. At 28:59, she says partners can bring debt and equity, letting her focus on finding deals or operating them. (at 28:29)
Meg on adding experience to the sponsor team
At 18:38, Meg says she brought in an architect-builder with decades of experience and a Nashville developer with 40 years in the area. At 19:06, she says offering equity can help assemble a team with a track record. (at 18:38)
"you want to choose partners that have complimentary skill sets to yours and not the same"
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
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Frequently asked questions
How can real estate sponsors use co-GP partners to scale deals?
Meg says she and her first co-GP partner are on their fifth project together, with about $125 million between them. Their first deal gave them a working structure they could reuse on later projects.
How many of Meg's deals used co-GP?
At 11:34, Meg said five of her 12 deals used a co-GP structure. She said three deals were still preliminary and had not broken ground.
What did Meg say about focusing on Nashville?
At 9:40, Meg said knowing Nashville well helped because it was a small real estate community and many deals came off market. At 10:37, she said her board, consultants, professionals and co-GPs helped her learn different asset classes.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.