Single-Asset Syndications vs. Funds

Cassidy Burns
Jan 21
3 min read

Why BPG Holdings Evolved — and How We Think About Both Today

One of the questions we hear most often at BPG Holdings is:

“Why did you move away from single-asset syndications and into a fund model?”

The short answer: we didn’t abandon them — we evolved our strategy.

In January 2024, we made a deliberate shift to make funds our primary investment vehicle, while still keeping single-asset syndications in our toolbox — just used very differently than most sponsors.

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Let’s explain why.

How Single-Asset Syndications Fit at BPG Holdings

Single-asset syndications were a foundational part of BPG Holdings early on, and they still serve a purpose today — just not as short-term IRR plays.

When we do a single-asset syndication now, it’s because:

The asset is exceptional
The location is durable
The business plan supports a very long-term hold

These deals are underwritten with a wealth-preservation and cash-flow mindset, not a “buy, force appreciation, and sell in 3–7 years” approach. To me, that model only works on certain assets and a lot of operators have gotten burned by not having a long term exit strategy.

In other words:

We’re not chasing quick exits
We’re not forcing IRR
We’re buying assets we’re comfortable owning for a decade or longer

The Limitation of Single-Asset Deals (Even the Good Ones)

Even with a great long-term asset, a single-asset structure still comes with one unavoidable reality:

All the risk lives in one place.

One roof.

One market.

One operating story.

If something underperforms — whether it’s operational, market-driven, or simply bad timing — there’s no portfolio to absorb the impact.

That realization is a big part of what led to our evolution. We didn’t want to live and die by one proforma.

Why BPG Holdings Transitioned to the Fund Model in January 2024

The move to funds wasn’t about doing more deals — it was about doing smarter, more resilient investing.

1. Diversification — Down to the “One Room” Level

Our funds don’t just diversify by city or asset type.

They diversify by:

Market
Property
Unit
Income stream

Instead of betting on one asset to perform perfectly, investors gain exposure to hundreds of individual rooms across multiple properties and locations.

That’s a fundamentally different risk profile.

2. Mitigating Single-Asset Risk

In a single-asset syndication:

One underperforming deal = underperforming investment

In a fund:

One underperforming asset is offset by others
Cash flow is more consistent
The portfolio continues to perform as a whole

This isn’t about eliminating risk — it’s about not letting one deal define the outcome.

3. Multiple Exits Over a 10-Year Fund Hold

This is where funds really shine.

Our funds are designed with a 10-year hold horizon, which allows for:

Strategic refinances
Selective asset sales
Capital recycling
Liquidity events without liquidating the entire portfolio

We’re not forced to sell everything at once or time the market perfectly. We can exit assets when it makes sense — not when a fund clock forces us to.

4. Long-Term Ownership = Generational Wealth

At BPG Holdings, we don’t optimize for a spreadsheet metric.

We optimize for:

Durable cash flow
Inflation protection
Long-term appreciation
Assets we’d be proud to own through multiple cycles

Funds allow us to think like long-term owners, not deal traders.

How We Decide: Fund vs. Single Asset Today

Here’s the simple framework we use internally:

Funds → Core strategy
- Portfolio diversification
- 10-year hold
- Multiple exits
- Risk-adjusted, long-term wealth building
- IRR-driven, how does it fit into our portfolio architecture
Single-Asset Syndications → Opportunistic & intentional
- Exceptional assets only
- Long-term holds
- Cash flow focused
- Not IRR-driven, not quick flips