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The Avestor Team
Oct 1, 2024

How Triple Crown Raised $4 Million in 60 Days to Acquire Two Hotels

Executive Summary

Triple Crown, a hotel investment firm, faced the challenge of using outside investor funds to acquire two new hotels. Lacking the necessary expertise in legal and compliance matters, they partnered with Avestor for a comprehensive solution. Avestor helped them establish a customizable investment fund, develop a tailored fundraising strategy, and launch an investor-friendly platform. As a result, Triple Crown successfully raised $4 million in just 60 days.

Background

The Triple Crown team had traditionally relied on using their personal capital to fund their hotel acquisitions. However, as they sought to scale their business, they realized they needed to tap into investor capital. Unfamiliar with the highly regulated space of capital raising, they required a partner who could guide them through the complexities of legal compliance and investor management. Their goal was to find a cost-effective, scalable solution that would allow them to continue raising capital for future acquisitions.

Customer:
Triple Crown Holdings
Challenge:
Capital Raising and Compliance Challenges at Triple Crown
Solution:
Avestor’s Customizable Fund Solution for Triple Crown
Results:
Triple Crown Raises $4 Million in 60 Days
The Challenge:
Capital Raising and Compliance Challenges at Triple Crown
  • Capital Raising: Triple Crown needed to raise funds for two hotel acquisitions quickly, but had limited experience in navigating the complexities of investor capital and legal regulations.
  • Compliance & Legal Complexity: They needed help understanding and adhering to SEC compliance, creating legal documents, and setting up an investor-friendly fund.
  • Investor Management: They lacked the infrastructure to handle investor onboarding, capital transactions, and fund accounting efficiently
The Solution:
Avestor’s Customizable Fund Solution for Triple Crown

To meet their goals, Triple Crown partnered with Avestor, leveraging Avestor’s customizable fund solution to raise capital efficiently.

  • Customizable Fund Creation: Avestor built a flexible fund structure for Triple Crown, allowing them to easily add new hotel offerings as acquisition opportunities arose.
  • Comprehensive Support: Avestor guided them through the creation of their fund strategy, legal documents, and compliance with SEC regulations. This end-to-end support ensured Triple Crown could navigate the complexities of capital raising with ease.
  • Investor Pitch Deck & Offerings: Avestor assisted in crafting a compelling pitch deck and structuring investor offerings with attractive terms, including preferred payments and a waterfall model.
  • Branded Investor Portal: Avestor developed a customized, branded investor portal where investors could log in, review hotel offerings, and track their investments.
  • Fund Setup & Accounting: The Avestor team, along with their network of attorneys and tax specialists, helped set up the fund structure and operational entities, while handling all fund accounting to ensure smooth capital tracking.
  • Streamlined Investor Onboarding: Avestor’s platform managed all aspects of investor onboarding, including KYC/AML checks, accreditation verification, electronic signatures, and money collection, ensuring a smooth and compliant process.
The Results:
Triple Crown Raises $4 Million in 60 Days

With Avestor’s assistance, Triple Crown successfully launched their investment fund and began raising capital within days. By utilizing a powerful investor portal and a well-crafted pitch, they raised $4 million in just 60 days. This enabled them to complete the purchase of two hotels while freeing up personal capital to focus on further scaling their business.

  • Quick Fund Launch: Triple Crown quickly transitioned from using personal capital to investor capital, launching their fund efficiently.
  • $4 Million Raised in 60 Days: The investor-friendly platform and strong pitch deck resulted in rapid fundraising, securing the capital required for two hotel acquisitions.
  • Scalable Growth: With the new fund structure, Triple Crown is now positioned to raise capital for future acquisitions, allowing them to focus on expanding their portfolio without being limited by personal financial resources.

Conclusion

Avestor provided Triple Crown with a complete, scalable solution, empowering them to shift from self-funding hotel acquisitions to raising capital from investors. With Avestor’s platform and expert guidance, Triple Crown is now positioned for long-term growth and scalability in the hotel investment market.

If you’re looking to scale your hotel business using investor capital, learn more about Avestor at www.avestor.com

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