Philippe Schulligen, Boost Capital Group
From Aerospace to Real Estate: An Allocator's Tale
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Guest: Philippe Schulligen, Boost Capital Group
The growing complexity of US real estate investment has led to the emergence of a new class of capital allocators, yet many struggle to differentiate themselves in an increasingly crowded marketplace, as a candid conversation in my latest podcast reveals.
Philippe Schulligen, co-founder of Boost Capital Group, which has raised $2m since 2022, exemplifies both the opportunities and challenges facing new entrants in the space.
A former aerospace engineer, Philippe’s firm positions itself as an intermediary between sophisticated property operators and retail investors, offering what he terms ‘wholesale access to institutional-quality deals.’
Business Model and Deal Structure
The business model is straightforward: Boost aggregates smaller investment checks into larger commitments, negotiating preferential terms with sponsors. A typical arrangement might see the sponsor offering a 90-10 profit split versus the standard 80-20, with Boost taking a portion of the enhanced returns while still delivering better terms to its investors than they could access directly.
Structural Challenges
Yet the conversation revealed deeper structural challenges facing the sector. Despite Philippe’s technical background in risk management and complex systems, potentially valuable skills in real estate investment, his firm's marketing emphasizes generic wealth-building messaging that has become ubiquitous in the space.
Investment Criteria
The firm maintains strict sponsor requirements:
- Minimum seven-year operational track record
- Portfolio of at least 2,000 units
- Three full-cycle deals completed
- Vertical integration preferred
Philippe says that these standards, developed during the post-2018 property boom, may need reassessment given current market conditions.
Capital Formation Hurdles
"It's hard to raise money," Philippe acknowledged, highlighting the persistent challenge of attracting investment despite examining some 60 potential deals in 2024, of which only four were deemed suitable for investors.
Industry-Wide Implications
The discussion highlighted a broader industry challenge: as real estate investment becomes more accessible to retail investors, capital allocators must work harder to distinguish themselves. Many default to similar marketing language about passive income and wealth building, overlooking their unique value propositions.
This democratization of real estate investment, while opening new opportunities for retail investors, also raises questions about how effectively these newer intermediaries can compete with established players in an increasingly sophisticated market.
The conversation suggests that success in this evolving landscape may depend less on standard industry practices and more on allocators' ability to leverage their distinctive expertise and backgrounds—a lesson that could prove particularly relevant as the sector navigates current market uncertainties.
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Special Bonus for Podcast Listeners: As a thank-you for tuning in, Philippe is offering free access to his brand-new course, Building Wealth through Multifamily Real Estate - Multifamily Investment Due Diligence. Visit boostmycapital.com/course and use the coupon code P01 to claim your access.
