Fiduciary Duties in Syndications: Key Principles

Understand the core fiduciary duties every real estate syndicator and fund manager must uphold—loyalty, care, disclosure, confidentiality, and impartiality—to ensure legal compliance and investor trust.
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Fiduciary duties are foundational to building trust and credibility in real estate syndications and investment funds. Understanding and properly implementing these duties is crucial for syndicators, fund managers, and anyone raising capital through private placements. The five key fiduciary duties discussed—loyalty, care, disclosure, confidentiality, and impartiality—each play a distinct role in protecting investors and maintaining legal compliance.

The duty of loyalty ensures that syndicators place investor interests above personal gain, especially in the presence of conflicts of interest. The duty of care mandates thorough diligence, strong decision-making, and responsible stewardship of investor capital. The duty of disclosure focuses on informing investors of all material facts that could influence their decisions, particularly before investment. Confidentiality protects sensitive investor information, and impartiality ensures fair treatment of all investors, especially during redemptions.

These duties are not just legal requirements—they are guiding principles for building long-term investor relationships and successful syndication businesses.

Chapters:
0:00 - What is a fiduciary duty in syndication?
0:33 - Putting investors’ interests first
1:45 - Duty of loyalty explained
2:57 - Avoiding conflicts of interest
3:52 - Duty of care and investor responsibility
4:39 - Duty of disclosure and transparency
5:44 - Importance of confidentiality in syndications
6:27 - Duty of impartiality and fair redemptions
8:01 - Supporting syndicators and fund managers

Read more about Real Estate Syndications & Funds – A Legally Sound Path to Raising Capital: https://www.moschettilaw.com/real-est...

Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).

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