Are you interested in learning more about how investment groups work? If you are considering working for an investment group or investing money with them – this article can provide you with some good information.
Investment groups can take many forms. One form is a collective of investment banks which group together to underwrite a specific new security or to lend money to a borrower. These groups come together to help manage particularly large deals which might be too big for any one of them to manage on their own. In this case, the investment group forms a temporary syndication which then dissolves after completing the deal at hand.
Another form of investment group is sometimes formed to manage large real estate deals. These are sometimes known as real estate investment groups. They are organizations which might construct a group of properties and then sell them to investors. After the sale, the investment group might also find tenants, manage maintenance for the properties, and even collect and manage the rental income. The advantage to investors is that they get the benefits of owning rental units without the trouble of having to provide hands-on management themselves.
Some specific functions of investment groups are the following:
- Underwrite and sell a new security
- Lend money to borrowers
- Manage very large deal sizes
- Develop real estate projects
- Provide real estate property management services
Therefore investment groups provide a number of valuable services for companies issuing securities, needing to borrow money, or develop and manage real estate projects.