Key Takeaways
- • Sample Gates Management, an undergraduate-run real estate fund at Indiana University's Kelley School of Business, manages approximately $12 million in equity raised from third-party investors and has completed its first exit with a 65% gross profit.
- • The fund, led by 21-year-old rising senior Brooks Hiller and a team of 20 undergraduates, invests in commercial properties including apartment developments and industrial parks across the United States, distinguishing itself from traditional student investment clubs that deploy university endowment funds.
- • The program's success reflects structural shifts in both higher education and real estate markets: the democratization of investment data through digital platforms has lowered information asymmetries, while universities increasingly prioritize experiential learning to bridge the gap between classroom instruction and practical professional skills.
- • Indiana University's real-estate investment program is by most accounts the largest undergraduate-managed fund of its kind, attracting talent such as Hiller, who selected the university specifically to participate in the initiative.
Summary
Sample Gates Management operates as a functional private-equity vehicle managed entirely by undergraduates at Indiana University's Kelley School of Business. The fund manages approximately $12 million in third-party capital and invests in commercial real estate across multiple asset classes, including apartment developments and industrial parks. Unlike conventional student investment clubs that rely on university endowments or donations, Sample Gates raises institutional capital from external investors, positioning it as a legitimate alternative investment vehicle operated by non-professionals.
The fund's operational structure and early performance demonstrate viability at scale. Brooks Hiller, a rising senior at Indiana University, leads a team of 20 undergraduates through deal evaluation, execution, and portfolio management. The program's first exit generated a 65% gross profit, validating both the investment thesis and the operational competence of student managers. Hiller's own pathway to the program—he selected Indiana University as an undergraduate partly to gain access to Sample Gates—underscores the initiative's reputation within younger investor demographics.
The program reflects two concurrent trends reshaping both higher education and professional real estate investment. First, digitization of the real estate market has democratized access to standardized market data, pricing information, and deal flow that was historically confined to information networks at private clubs and professional conferences. This technological shift has compressed information asymmetries, enabling undergraduate teams to operate on near-equal analytical footing with professional investors. Second, universities have increasingly embraced experiential learning models that prioritize hands-on skill development over traditional classroom instruction. The proliferation of undergraduate real estate degrees, minors, and concentrations across dozens of universities reflects institutional recognition that practical deal experience cannot be replicated in lecture halls.
Indiana University's program stands apart by most accounts as the largest undergraduate-managed fund managing third-party capital. The model creates stakeholder alignment across multiple constituencies: students acquire professional-grade experience in capital deployment, the university enhances its educational value proposition, and investors achieve both financial returns and the intangible benefit of supporting an educational initiative with demonstrable results.
The fund's operational structure and early performance demonstrate viability at scale. Brooks Hiller, a rising senior at Indiana University, leads a team of 20 undergraduates through deal evaluation, execution, and portfolio management. The program's first exit generated a 65% gross profit, validating both the investment thesis and the operational competence of student managers. Hiller's own pathway to the program—he selected Indiana University as an undergraduate partly to gain access to Sample Gates—underscores the initiative's reputation within younger investor demographics.
The program reflects two concurrent trends reshaping both higher education and professional real estate investment. First, digitization of the real estate market has democratized access to standardized market data, pricing information, and deal flow that was historically confined to information networks at private clubs and professional conferences. This technological shift has compressed information asymmetries, enabling undergraduate teams to operate on near-equal analytical footing with professional investors. Second, universities have increasingly embraced experiential learning models that prioritize hands-on skill development over traditional classroom instruction. The proliferation of undergraduate real estate degrees, minors, and concentrations across dozens of universities reflects institutional recognition that practical deal experience cannot be replicated in lecture halls.
Indiana University's program stands apart by most accounts as the largest undergraduate-managed fund managing third-party capital. The model creates stakeholder alignment across multiple constituencies: students acquire professional-grade experience in capital deployment, the university enhances its educational value proposition, and investors achieve both financial returns and the intangible benefit of supporting an educational initiative with demonstrable results.
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