Key Takeaways
- • Sample Gates Management Inc. raises $7.8 million in Fund II, exceeding its $6 million initial goal and bringing total assets under management to approximately $12 million across two investment funds.
- • Largest undergraduate-managed real estate private equity fund at the university level, with Fund I generating $4.2 million deployed across 12 real estate investments nationwide.
- • Second offering attracted 74 institutional and individual investors, including numerous Kelley alumni, sourced through 200+ investor meetings and custom marketing materials developed entirely by student fund managers.
- • Experiential learning model differentiates undergraduate program from peer institutions, where student-managed PE funds typically operate at the master's level and are funded by single donors or university capital rather than institutional capital raises.
- • Student-led capital raising and deal sourcing process mirrors institutional fund operations, with students conducting full investor relations, marketing, and deal management workflows.
Summary
Indiana University's Kelley School of Business has established the nation's largest undergraduate-managed real estate private equity fund with the completion of a $7.8 million capital raise for its second investment fund. Sample Gates Management Inc., the vehicle through which student investors operate, now manages approximately $12 million in total assets across two distinct fund iterations.
The second offering substantially exceeded its $6 million fundraising target, attracting capital commitments from 74 real estate firms, financial institutions, and individual investors. The investor base included significant participation from Kelley alumni, validating the fund's track record and market positioning. Student fund managers executed the entire capital raise independently, developing proprietary marketing materials and conducting over 200 investor meetings to source and secure commitments—a process that replicates institutional fundraising workflows.
Fund I, which preceded this second offering, successfully deployed $4.2 million across 12 real estate investments spanning multiple geographic markets. This operating track record formed the foundation for second-round investor confidence and capital commitments.
The program's significance lies in its structural differentiation from peer undergraduate finance initiatives. While student-managed private equity funds exist at the master's level across multiple institutions, those typically rely on university endowment capital or single-donor funding sources. Sample Gates Management's ability to raise institutional capital from external investors at the undergraduate level remains exceptional. According to Doug McCoy, Al and Shary Oak Executive Director of Real Estate at Kelley, the fund represents the practical integration of classroom learning with market-based deal activity: "Experiential learning fills in the cracks that may develop in students' minds as they take classes and learn concepts and fundamentals."
The fund structure provides undergraduate students with direct exposure to investor relations, capital formation, underwriting, and portfolio management—competencies typically acquired through full-time institutional roles or graduate-level programs.
The second offering substantially exceeded its $6 million fundraising target, attracting capital commitments from 74 real estate firms, financial institutions, and individual investors. The investor base included significant participation from Kelley alumni, validating the fund's track record and market positioning. Student fund managers executed the entire capital raise independently, developing proprietary marketing materials and conducting over 200 investor meetings to source and secure commitments—a process that replicates institutional fundraising workflows.
Fund I, which preceded this second offering, successfully deployed $4.2 million across 12 real estate investments spanning multiple geographic markets. This operating track record formed the foundation for second-round investor confidence and capital commitments.
The program's significance lies in its structural differentiation from peer undergraduate finance initiatives. While student-managed private equity funds exist at the master's level across multiple institutions, those typically rely on university endowment capital or single-donor funding sources. Sample Gates Management's ability to raise institutional capital from external investors at the undergraduate level remains exceptional. According to Doug McCoy, Al and Shary Oak Executive Director of Real Estate at Kelley, the fund represents the practical integration of classroom learning with market-based deal activity: "Experiential learning fills in the cracks that may develop in students' minds as they take classes and learn concepts and fundamentals."
The fund structure provides undergraduate students with direct exposure to investor relations, capital formation, underwriting, and portfolio management—competencies typically acquired through full-time institutional roles or graduate-level programs.
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