Fund Size

$50M is very small. I’d say anything over $400M if equity is decently sized. That’ll lever up to $1BN at 60% LTV, and if you get a couple funds that size in series, at various points of the fund life cycle, then you can see a decent AUM. Anything smaller than $100M and it becomes difficult to justify the formation and admin costs.

Depends on what the purpose of the fund is. Trunk Yeti seems to be thinking of a large institution raising money. And in that case he's correct.

But if you are a smaller player who is hyper-focused on a single asset class in a single region, it can make sense to go smaller. Buying mid-size MF in Tennessee? $75mm can make sense, because you're not going to compete with big national players to write a $3-5mm checks. Someone running a $750mm fund can't afford to be writing a check that small.