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Ari Rastegar Featured in Dallas’ D Magazine

My good friend and colleague Ari Rastegar was recently featured in D Magazine. The topic? Real estate, of course.

In the interests of full disclosure, I invest a portion of both my personal funds and my clients’ funds with Ari.

You can read an excerpt of the article here:

Dallas real estate investor Ari Rastegar has never been one to follow the crowd. He’s certainly not doing so with his company, Rastegar Equity Partners. Long before investors began balking at the “two-and-20” compensation model, Rastegar was offering an alternative.

The traditional structure used by private fund managers is to charge investors a fixed 2 percent management fee (of total asset value) and a 20 percent performance fee (on any profits earned). They also assess acquisition commissions, fees for monitoring investments, and other charges. Rastegar keeps it simple, taking a 1.2 percent management fee—then half of all profits above an 8 percent return. Instead of making money on the front end, he makes it on the back end. Investors accept the lower cut of profits after the hurdle in exchange for lower management costs and no additional fees. “I go out of my way to be open-kimono with investors,” he says. “I grew up in the era of Bernie Madoff, and I’ve seen how investors can get scared. I want them to know, ‘I’m not going to make money off you; I’m going to make money with you.’”

You can read the full article here.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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