Key Takeaways
- • Indiana University Kelley School of Business students raised $4.2 million to establish Sample Gates Management Inc., the largest undergraduate student-managed real estate private equity fund by capital raised in the United States.
- • The fund closed its initial offering in late December 2022 with over three dozen institutional investors, financial firms, and Kelley alumni as limited partners, with invested capital deployed across real estate transactions vetted by practicing professionals and alumni serving on an investment committee.
- • Student managers will operate the fund under faculty guidance, with Doug McCoy, the Al and Shary Oak Director of Real Estate and teaching professor of finance at Kelley, overseeing the Center for Real Estate Studies and the fund's strategic direction.
- • The fund emerged from a three-year student initiative and represents an integration of academic training with practical real estate asset management, positioning graduates as experienced professionals upon completion of their studies.
Summary
Students at the Indiana University Kelley School of Business have successfully launched Sample Gates Management Inc., a $4.2 million real estate private equity fund that represents a significant milestone in undergraduate finance education. The fund closed its initial capital raise in late December 2022, making it the largest undergraduate student-managed real estate private equity fund by dollars raised in the country. The capital was raised entirely through a formal offering that attracted more than three dozen investors, including real estate firms, financial institutions, and individual Kelley alumni.
The fund structure emphasizes that investor commitments constitute equity capital rather than philanthropic donations. According to Doug McCoy, the Al and Shary Oak Director of Real Estate and a teaching professor of finance at Kelley, the distinction is critical: "We want to make it clear that this is investment money, not donations. Our students will turn around and invest in real estate transactions under the guidance of an investment committee and faculty." This governance model places student managers at the center of transaction sourcing, underwriting, and execution, while seasoned professionals—many of whom are fund investors and alumni—provide oversight and validation through a formal investment committee structure.
The fund's establishment culminated a three-year development process driven entirely by student initiative. McCoy characterized the initiative as central to Kelley's real estate program strategy: "This is something that hopefully succeeds for decades, and we believe it will be a big part of our students' development. We've removed the wall between academia and practice, and that integration of those two allows our students to graduate as experienced professionals." All real estate transactions undertaken by the fund receive rigorous vetting from practicing professionals serving as investors and committee members, ensuring that student decision-making is informed by institutional expertise and market discipline.
The fund structure emphasizes that investor commitments constitute equity capital rather than philanthropic donations. According to Doug McCoy, the Al and Shary Oak Director of Real Estate and a teaching professor of finance at Kelley, the distinction is critical: "We want to make it clear that this is investment money, not donations. Our students will turn around and invest in real estate transactions under the guidance of an investment committee and faculty." This governance model places student managers at the center of transaction sourcing, underwriting, and execution, while seasoned professionals—many of whom are fund investors and alumni—provide oversight and validation through a formal investment committee structure.
The fund's establishment culminated a three-year development process driven entirely by student initiative. McCoy characterized the initiative as central to Kelley's real estate program strategy: "This is something that hopefully succeeds for decades, and we believe it will be a big part of our students' development. We've removed the wall between academia and practice, and that integration of those two allows our students to graduate as experienced professionals." All real estate transactions undertaken by the fund receive rigorous vetting from practicing professionals serving as investors and committee members, ensuring that student decision-making is informed by institutional expertise and market discipline.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.