A New Era for Access to Capital
Access to capital remains one of the biggest challenges for real estate sponsors in 2025. Sponsors are navigating a complex, shifting environment with tighter capital markets, rising investor expectations, and shifting regulatory dynamics.
Despite $350 billion in dry powder and early signs of a transaction rebound, fundraising remains sluggish. Trade policy uncertainty dampened first-quarter momentum, and fundraising timelines now stretch to nearly 24 months. Still, evolving capital strategies and structural shifts point to a slow but steady path to recovery, one that demands patience and precision.
The capital landscape is changing, and sponsors relying on old fundraising methods face diminishing returns. This isn’t a temporary slump. It’s a fundamental shift, and sponsors who don’t evolve will be left behind.
Large Fund Closings Distort the Capital Access Picture
There’s no shortage of capital, just a growing gap in access.
Some sponsors are struggling to close even modest raises, while others have billions in capital waiting on the sidelines. The gap is widening, especially between those with modernized processes and those clinging to outdated workflows.
Wealthy investors are more eager than ever to invest in alternatives. A recent survey revealed that 70% of high-net-worth (HNW) investors are interested in real estate and private equity. Yet, only 16% access these investments through their Registered Investment Advisors (RIAs).
That’s a major disconnect and a missed opportunity.
Meanwhile, retail capital is growing fast, but remains underutilized due to structural bottlenecks like restrictive RIA networks, outdated onboarding processes, and antiquated compliance workflows.
Regulatory reforms may help. The Equal Opportunity for All Investors Act and a proposed FINRA accreditation test could soon widen the funnel.
While these changes have potential, investor sentiment remains cautious. According to the latest Fear & Greed Index for commercial real estate, 71% of investors said they’re “holding tight” in Q2 2025, the highest level of hesitation the survey has ever recorded.
That may be an extraordinary level of restraint, but sponsors must understand that capital isn’t gone. It’s just harder to reach without a modernized process.
Where Capital Raising Breaks Down
Getting investors interested is no longer the biggest challenge. Conversion is. Many sponsors generate interest but lose investors during the subscription process. Why? Because friction kills momentum.
Some of the most common breakdowns include:
- Clunky or delayed onboarding workflows
- Friction-filled subscription documents requiring RCMs or wet signatures
- Inability to accept ACH transfers or deliver real-time transaction updates
- Inconsistent branding across materials and platforms, which erodes investor trust
A recent InvestNext webinar revealed that streamlined onboarding directly correlates with higher conversion rates. In other words, capital raising success is increasingly about user experience.
Meeting Investor Expectations Is Key to Securing Capital
Investor expectations have risen dramatically, especially among HNW and retail segments. They want an institutional-grade experience, even when investing in boutique or mid-market deals.
At a minimum, today’s investors expect:
- A fast, seamless onboarding experience
- Branded portals that instill confidence
- ACH-enabled capital calls with immediate confirmation
- Transparent reporting and performance dashboards after the deal closes
Without these features, even interested investors may quietly disengage before funding. It’s not personal, it’s experiential. Sponsors who ignore these expectations risk losing investors before they even have a chance to fund.
What Top Sponsors Are Doing to Improve Capital Access
Today’s most successful sponsors are going beyond merely selling deals. They are also in the business of delivering experiences.
This is what sets them apart:
- White-labeled investor portals that build trust and extend brand presence
- Streamlined subscription flows that eliminate PDF-based docs and redundant paperwork
- Secure data rooms that make due diligence easy and fast
- Full ACH and banking integrations for effortless inbound funding, capital calls, and distributions
Innovative tech platforms like InvestNext are enabling these capabilities at scale. Sponsors using InvestNext report faster closes, higher conversion rates, and better investor retention.
The platform’s all-in-one design helps streamline every step of the raise, from outreach and onboarding to capital collection and post-close reporting.
Access to Capital Will Flow—to the Ready
Raising capital is still possible in 2025, but only for sponsors who’ve built the backend to support it.
Today’s capital markets demand more than great deals. They require great systems. Sponsors still using manual workflows or legacy tools will continue to fall behind, no matter how great the deal.
Source: “Capital Raising in 2025: Why Great Deals Aren’t Enough Anymore“
