As real estate investing becomes more institutionalized, smaller private funds are beginning to adopt strategies long used by large asset managers: geographic diversification, operator specialization, and data-driven capital allocation.
Sarah Sullivan, founder and managing partner of SuGo Capital, has structured her firm around this exact philosophy.
Rather than operating properties directly, SuGo Capital functions as a specialized fund manager, evaluating markets nationally and partnering with established local operators that already possess the infrastructure and execution capacity required for performance.
This model, Sullivan argues, allows for greater objectivity and risk management, particularly in a period where market cycles are accelerating and regional conditions vary widely.
From a portfolio perspective, Sullivan focuses on market-level indicators such as job growth, population migration, and rental fundamentals, using that data to inform entry and exit timing rather than relying solely on property-level performance.
Transparency is central to the strategy. SuGo Capital makes clear distinctions between fund management and property operations, outlines risk factors upfront, and avoids representations of guaranteed returns, which is vital for alignment with Regulation D standards and institutional best practices.
As private capital investors become more sophisticated, Sullivan believes the future belongs to firms that combine disciplined underwriting with clear role definition and investor education.
“Institutional thinking isn’t about size,” she notes. “It’s about process.”
