Why Medalist’s Permanent Capital Platform Outperforms Deal-by-Deal Models
The Persistent Struggles of Deal-by-Deal Fundraising
For many real estate sponsors and family office managers, deal-by-deal fundraising has long been the status quo. However, this traditional model often brings pressing challenges that can limit both growth and efficiency, including:
Constant Scramble for Capital
Every new deal necessitates starting a time-consuming and energy-draining capital raise from scratch. This process can delay closings, strain relationships with investors, and detract from core operations.
Loss of Top-Performing Assets
When assets are sold simply to return investor capital, managers forfeit long-term performers that could have compounded value over time.
Unfavorable Deal Terms
Facing the pressure to secure funding often forces operators into suboptimal deals, including higher costs of capital and limited flexibility, reducing overall profitability.
These limitations can seriously hinder scalability and strategic decision-making, particularly for sponsors aiming to secure stable, long-term growth. Fortunately, there is a better path—a permanent capital platform.
Medalist’s Permanent Capital Platform: A Game-Changer
Medalist’s permanent capital platform is designed to address the frustrations of deal-by-deal models head-on. By shifting to a permanent capital structure, operators gain access to long-term funding, greater flexibility, and a scalable growth engine. Here’s how it works and why it’s such a powerful solution.
1. Stable, Consistent Funding for Scalable Growth
With permanent capital, operators no longer need to repeatedly raise funds for each transaction. Instead, Medalist provides a committed pool of capital that can be deployed strategically as opportunities arise. This enables operators to:
Act Quickly on Opportunities
Immediate access to funding eliminates delays caused by capital raising, allowing sponsors to secure deals faster and negotiate on their terms.
Focus on Growth
Freed from constant fundraising efforts, sponsors can dedicate more time to scaling their portfolios, optimizing asset performance, and enhancing operational efficiency.
2. Retention of Top-Performing Assets
A key drawback of the deal-by-deal model is the need to sell assets to return capital to investors. With Medalist’s platform, operators can retain their highest-performing properties, allowing them to:
Compound Value Over Time
By holding onto appreciating assets, sponsors can realize greater cumulative returns over the long term.
Build Portfolio Stability
Retained assets form the foundation of a steady, income-generating portfolio, reassuring investors and providing predictable cash flows.
Align with Long-Term Goals
Retaining assets simplifies estate planning and aligns more closely with multi-decade investment horizons, particularly for family offices and legacy managers.
3. Powerful REIT Structure for Aligned Growth
Medalist’s permanent capital platform is structured as a real estate investment trust (REIT), delivering additional benefits that amplify its appeal to both sponsors and investors. For example:
Tax Advantages via 721 Exchange
Real estate owners can exchange their properties for REIT shares through a 721 Exchange, deferring capital gains taxes while securing a more liquid and diversified real estate position. This is especially valuable for estate planning and intergenerational wealth transfer, allowing heirs to seamlessly inherit an income-producing investment rather than managing individual properties.
Aligned Capital Partners
Unlike ad hoc deal investors, the REIT structure attracts long-term, aligned capital partners who understand the value of steady growth. These partners are vested in the success of the entire portfolio, not just a single transaction.
Liquidity and Transferability
Shares in the REIT are far more liquid than traditional real estate properties, allowing for flexibility in portfolio adjustments and providing investors with optionality that traditional ownership cannot match.
4. A Transferable Business Model for Generational Success
Medalist’s permanent capital platform isn’t just about short-term performance—it’s designed for sustainability and long-term success. Operators leveraging this platform create a business infrastructure that endures beyond individual deals and even ownership lifespans.
Scalable Systems
By establishing a repeatable, growth-oriented structure, sponsors can seamlessly add or integrate assets without having to reinvent processes for each transaction.
Legacy Preservation
Family offices and heirs benefit from a streamlined, tax-efficient framework to manage estates, ensuring preservation of wealth and alignment with the family’s financial goals.
Predictable Stability
Ongoing yield generation and portfolio diversification provide reassurance for both current operators and future stakeholders.
What This Means for Real Estate Sponsors and Family Offices
By solving the inefficiencies inherent in deal-by-deal models, Medalist’s permanent capital platform offers sponsors, family offices, and 1031 exchange investors a powerful opportunity to grow and stabilize their portfolios. Whether you’re grappling with an aging investor base, rising liquidity pressures, or simply want to simplify your business structure, this strategy aligns seamlessly with long-term goals like income stability, portfolio growth, and estate planning.
Take the Next Step Towards Sustainable Growth
Medalist’s permanent capital platform is about more than just funding—it’s a pathway to scaling smarter, aligning with like-minded partners, and setting the foundation for enduring success. If you’re ready to transition to a model that prioritizes retention of value, aligned growth, and stability, Medalist is here to guide you every step of the way.
Contact us today to learn how the Medalist permanent capital platform can fuel your next phase of growth!
