The Capital-Raising Landscape is Changing
Raising capital in 2025 looks different than it did just a few years ago. Investor expectations have evolved, regulatory complexities have increased, and fund managers need more flexibility than ever.
For years, syndications have been the go-to model for real estate sponsors. But as market dynamics shift, more fund managers are looking beyond traditional syndications and exploring Customizable Fund™ as a more scalable solution.
But which one is right for you? And more importantly, do you have to choose just one?
At Avestor, we’ve powered 450+ fund managers to raise hundreds of millions. Here’s how to pick your path (or blend them) in 2025.
Difference Between Syndications & Customizable Fund™
What is a Syndication: Your Precision Weapon?
A syndication is a deal-specific investment where capital is raised for a single project. Investors commit funds to that one opportunity, and once the deal is complete, the syndication closes.
But so far traditional syndications come with their own setbacks:
- Raising capital per deal = 60+ hours wasted repeating compliance, documents, and investor onboarding.
- $15K legal fees per offering? Brutal.
- No investor loyalty = Groundhog Day of cold outreach.
Ideal For:
- One-off deals
- Testing new markets without fund restructuring.
- Co-GP collaborations (bring in niche experts per deal)
Read More: Avestor vs. Real Estate Syndications: Breaking Down the Cost Difference
What is a Customizable Fund™: Your Evergreen Engine?
A Customizable Fund™ is an evergreen investment vehicle that allows fund managers to raise capital continuously while offering investors flexibility in selecting deals.
Ideal For:
- Pooling capital across 26+ asset classes (debt, equity, loans).
- Building institutional credibility with evergreen structures.
- Investors who crave automated diversification (more retention vs. one-off deals).
Both models have their place—but knowing when to use each is key.
Enter Avestor’s 2025 Ecosystem: Now, you don’t choose. You combine.
How Do They Compare?
1. Capital Raising Flexibility
Syndications
- Funds are raised on a deal-by-deal basis.
- Capital must be secured within a set timeframe.
- If the raise falls short, sponsors may have to bring in additional partners or restructure the deal.
- A new PPM and legal paperwork are required for each deal
Result: Managers using Avestor Syndications will be able to close capital faster than traditional platforms.
Customizable Fund™
- Allows for ongoing capital raising, not tied to a specific deal.
- Investors can reinvest returns into future opportunities within the fund.
- Fund managers can deploy capital when the right deals arise, without urgent fundraising deadlines.
- You only need one PPM for your deals
Result: 63% of Avestor managers scale faster than industry benchmarks.
Key Takeaway: Syndications require intensive capital raising efforts for each deal, while a Customizable Fund™ enables continuous fundraising and deal execution.
2. Investor Experience & Control
Syndications
- Investors commit to a single deal and have no option to diversify within the syndication.
- Once invested, capital is locked in until the deal is completed.
- Typically, higher minimum investments are required per deal.
Customizable Fund™
- Investors can diversify across multiple deals within one fund.
- Capital can be reallocated as new opportunities arise.
- Lower minimum investments allow for fractional participation.
Key Takeaway: Customizable Funds™ offer investors more control and flexibility over their capital allocation, while syndications provide a single-deal commitment structure.
3. Cost & Administrative Efficiency
Syndications
- Each deal requires new legal documents (PPM, operating agreements, etc.), increasing costs.
- Separate entities must be created for each deal.
- More complex investor onboarding and compliance management.
Customizable Fund™
- One-time setup for an evergreen structure.
- Lower legal and compliance costs over time.
- Investors are onboarded once and can participate in multiple deals.
Key Takeaway: A Customizable Fund™ reduces administrative burden and legal expenses compared to syndications, which require separate filings for each deal.
Read More: How to Launch a Customizable Fund
Introducing Avestor Syndications: The Best of Both Worlds
Why choose when you can have both? Avestor now offers both Customizable Funds™ and Syndications under one platform.
Why Manage Your Syndications on Avestor?
- Seamless Investor Experience – Investors access both funds & syndications under a single login.
- Faster Capital Raising – Collaborate with fund managers in Avestor’s Fund-of-Funds network.
- Compliance & Efficiency – Built-in KYC/AML, e-signing, and ACH transfers.
- Affordable Legal Support – Syndication documents at a fraction of traditional costs.
Avestor is the only platform where fund managers can:
- Raise capital for both syndications and funds in one place.
- Leverage an existing investor network to accelerate funding.
- Streamline operations with integrated compliance and CRM tools.
Which Model Is Right for You?
The decision between a Customizable Fund™ and a Syndication depends on your strategy:
Read More: Funds, Syndications, and Fund of Funds: What's the Difference?
Final Thoughts: Why Not Both?
The smartest fund managers don’t limit themselves to one model. Avestor’s ecosystem allows you to:
- Use syndications for one-off, high-impact deals.
- Leverage a Customizable Fund™ for continuous growth.
- Manage everything on one platform for seamless investor engagement.
Ready to Ditch the Dilemma?
Ready to Scale Smarter?
Book a strategy call with us to learn how Avestor can help you maximize your capital-raising potential.
Claim your free strategy call here: Landing Page
