Sample Gates Management is a real estate investment fund with $12 million in assets and enviable returns. It’s run entirely by undergraduates. The group is unusual for student investment clubs because it doesn’t rely on school funding or donations. It raises capital from real third-party investors and puts that money into commercial properties nationwide, from apartment complexes to industrial parks, the Wall Street Journal reported.
This summer brought the fund’s first exit. An Indianapolis warehouse development sold for a 65% gross profit after about 16 months. Tim Morris, a board member who signs off on the students’ investments, called it a return that would be “good for any professional firm, not just students.”
None of that money goes to the students who managed the deal, however. Every graduating class hands the fund to the next group of undergrads, and profits flow back to the investors who supplied the capital.
Does that cause some animosity? Not really. The students say they do it purely for the experience. Many already have jobs lined up at Wall Street firms.
Sample Gates Management is a real estate investment fund with $12 million in assets and enviable returns. It’s run entirely by undergraduates. The group is unusual for student investment clubs because it doesn’t rely on school funding or donations. It raises capital from real third-party investors and puts that money into commercial properties nationwide, from apartment complexes to industrial parks, the Wall Street Journal reported.
This summer brought the fund’s first exit. An Indianapolis warehouse development sold for a 65% gross profit after about 16 months. Tim Morris, a board member who signs off on the students’ investments, called it a return that would be “good for any professional firm, not just students.”
None of that money goes to the students who managed the deal, however. Every graduating class hands the fund to the next group of undergrads, and profits flow back to the investors who supplied the capital.
Does that cause some animosity? Not really. The students say they do it purely for the experience. Many already have jobs lined up at Wall Street firms.
