Jul 9, 2025
In private real estate investing, the tide is turning. Investors are demanding more than attractive returns—they want clarity, accountability, and trust. Transparency, once a nice-to-have, has become a defining feature of credible sponsors and fund managers.
In this blog, we explore:
Private real estate has long been criticized for its opacity. Off-market deals, complex structures, and limited investor access to information have historically been the norm.
But times are changing. LPs, especially newer entrants, RIAs, and tech-savvy investors, are no longer content with “trust us” as an answer. They're demanding access to data, real-time performance insights, and clear, proactive communication.
What’s driving this shift?
Transparency isn’t just a compliance play anymore. It’s a competitive edge.
Trust is the bedrock of any investment relationship. For LPs, the decision to allocate capital isn’t just about a deal’s projected IRR - it’s about belief in the sponsor’s integrity, alignment, and execution ability.
And trust is built through transparency.
When sponsors clearly share performance history, fee structures, business plans, and ongoing updates, LPs feel respected and reassured. It reduces cognitive friction and builds long-term loyalty.
Conversely, vague language, limited access to data, or inconsistent communication can erode confidence - even when the numbers are good. In short: transparency is the fastest path to trust, and trust is the foundation of capital formation.
Even experienced sponsors may be unaware of the blind spots that frustrate LPs. Here are a few recurring issues that undermine trust:
Too often, sponsors highlight general returns without a deal-by-deal breakdown. LPs want to see the full picture—projections vs. actuals, timeframes, hold periods, and outcomes.
Opaque waterfall models, back-end promotes, or poorly explained fees can leave investors confused and suspicious.
Quarterly PDFs with minimal insight no longer suffice. LPs expect consistent, timely, granular reporting, ideally through a secure portal they can access anytime.
LPs increasingly ask how sponsors handle conflicts, asset valuations, and decision-making authority. Silence here can be costly.
These gaps aren’t just operational, they’re cultural. Sponsors who ignore them risk losing repeat capital and reputation.
Transparent sponsors don’t just feel good about doing the right thing, they build stronger businesses. Here's how:
Higher Investor Retention
LPs who feel informed are more likely to reinvest and refer others. Trust compounds.
Easier Capital Raising
With clear reporting and a history of openness, sponsors spend less time defending their pitch and more time attracting interest.
Fewer Disputes or Legal Risks
Clarity reduces misunderstandings, missed expectations, and potential compliance pitfalls.
Increased Valuation of Sponsor Brand
Transparency communicates competence. Sponsors who operate openly are seen as lower-risk partners by both retail and institutional investors.
At Verivest, transparency isn’t a feature—it’s our foundation. We exist to help sponsors operate more clearly, more confidently, and more efficiently—so they can attract capital and retain it.
Here’s how we do it:
Our accounting team delivers timely and accurate financials and investor statements. These aren’t cookie-cutter reports, they’re tailored packages that reflect your fund’s unique structure and needs.
From launch to wind down, we assign real humans, not bots or AI Agents, who understand your strategy, help optimize your operations, and act as partners in your success.
Through our digital onboarding process and integrated investor management, sponsors can automate capital calls, distributions, and communications - without sacrificing accuracy or control.
We follow a structured, step-by-step review process. From cash reconciliation to investor-level reporting, everything is documented, tracked, and designed for audit-readiness. LPs get what they need, on time, every time.
Led by CEO Matt Burk, Verivest offers strategic advisory support based on decades of real estate fund experience. From fund formation to complex waterfall structures, our team helps you avoid pitfalls and scale responsibly.
Bottom line: Verivest doesn't just help you “look transparent”—we make transparency operationally scalable through structure, accountability, and the right tools.
Whether you use a third-party administrator or manage in-house, here are practical ways to improve transparency immediately:
As capital becomes more cautious and investors more discerning, transparency will be the line that separates legacy managers from next-generation leaders.
The old way of "just trust us" is over.
Sponsors that embrace structure, clarity, and proactive communication will not only attract better LPs—they’ll build better businesses. Platforms like Verivest make that future possible, delivering the support and systems sponsors need to lead with confidence.
In a trust-driven market, transparency is the most valuable asset you can offer.
Whether you're an emerging sponsor or an established firm looking to upgrade your operations, Verivest can help.
Reach out at sales@verivest.com
