Lexcraft Advisors

𝐖𝐡𝐲 𝐰𝐞’𝐫𝐞 𝐡𝐚𝐩𝐩𝐲 𝐭𝐨 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐰𝐢𝐭𝐡 𝐜𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞 𝐬𝐩𝐨𝐧𝐬𝐨𝐫𝐬 𝐦𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐬𝐦𝐚𝐥𝐥𝐞𝐫 𝐚𝐦𝐨𝐮𝐧𝐭𝐬 One of the most interesting dynamics we run into is when we meet a prospective client for the first time, and they immediately assume that we’re too expensive for them. The funny part is that we love to partner with smaller sponsors for a couple of reasons. From a dollar and cents perspective, it all boils down to the lifetime value of the client. We’ve watched several of our formerly small clients grow into much larger businesses over the years, and I can proudly report that we still work with them. As they have grown, our business relationships have grown too. From a service perspective, we usually have a greater impact on a smaller fund or syndication group. When we partner with a sponsor managing $5 million or $10 million in equity, we’re usually performing several services for them simply because they need the help. When we partner with a client managing $500 million, we’re more likely to take on a narrower scope of work because full-time employees or other specialist vendors are taking care of other things. In many cases, when we’re kicking off a new partnership with a smaller fund or syndicator, we’ll price our services to accommodate their budget. The relationship might even amount to a loss for us in the short term, but we’ve gotten good at identifying the sponsors who are most likely to see success over time. When we meet a sponsor who has a good chance of growing the business into something special, the most important thing for us is to ride along. It’s been a great ride so far. #privateequityrealestate #clients #pricing

𝐀 𝐥𝐨𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐰𝐫𝐢𝐭𝐭𝐞𝐧 𝐥𝐚𝐭𝐞𝐥𝐲 𝐚𝐛𝐨𝐮𝐭 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞 𝐟𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐫𝐮𝐥𝐞𝐬. 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐰𝐡𝐞𝐫𝐞 𝐰𝐞 𝐬𝐭𝐚𝐧𝐝. Lexcraft is different than other fund administrators in the sense that we help a lot of our clients with fund and syndication marketing initiatives. But, we know the rules, and there are a few things that we won’t do: No, we’re not going to talk to prospective investors on your behalf. They want to hear from you anyway. No, we’re not going to send written communications directly to prospective investors asking for commitments. That’s just tacky. No, we’re not going to host your webinar. There are reasons why we specialize in 𝑏𝑎𝑐𝑘 𝑜𝑓𝑓𝑖𝑐𝑒 operations - we're not exactly on-air talent. The good news is that we have a lot of experience with some things that are tremendously valuable during a fundraising initiative. We bring perspective. At this point, we’ve worked with clients raising anywhere from $5 million to $100 million across virtually every CRE asset class. Want to know what kind of terms your competitors are offering these days? We can help. We know how to write compelling CRE copy. Sure, any freelancer can put a deck together, but we’ve seen some real disasters along the way. We practically read offering memorandums and operating agreements for a living, so it’s not a stretch to say that writing the copy for your marketing collateral is second nature to us. We’re looking to work with you long after funding is secured. As a fund administrator, the closing of a fundraising initiative marks the beginning of the real work for us. In other words, our incentives are aligned with yours. The sooner we can wrap up a successful raise, the sooner we can get to work setting up your back office for long-term success.