Can eREITs Compete With Private Equity Funds?

Brandon Jenkins is the COO of Fundrise.

LOS ANGELES—Crowdfunded REITs, known as eREITs, are on their way to competing with large private equity funds. While RealtyMogul.com launched their version of an eREIT earlier this week, early eREIT adopter Fundrise is seeing soaring success with its eREIT products. Since launching the crowdfunded REIT last year, Fundrise has managed to snag 70% of the Reg A+ market, with $70 million of total investment dollars. Now, it is announcing a new partnership with an company that has worked with Black Rock and Morgan Stanley, marking an official foray into the large private equity market.

“The big news for us has been that the first two eREITs that we put forward are almost fully committed in terms of their investments, and the total dollars raised at this point, as of our last public filing, has more than $70 million,” Brandon Jenkins, COO of Fundrise, tells GlobeSt.com. “If you look at the reports that have been put out by the SEC in terms of the Reg A+ industry, that amount is 70% to 75% of the money that has been raised in the entire Reg A+ industry.”