When the University of North Carolina's student-run real estate investment fund reached out to Equus Capital Partners President and CEO Daniel DiLella about potential investment opportunities, the Villanova University board member declined, but then had a thought - why isn't Villanova doing the same? The Daniel M. DiLella Center for Real Estate at the Villanova School of Business, established by DiLella through a $5 million gift in 2007, is putting that suggestion into action and creating the Villanova Real Estate Investment Fund.

While details of the fund's operations are still being ironed out, the center's director Jessica Taylor said they're aiming to have it ready to roll in the fall of 2018.

It will differ from UNC's fund in one major way. Operating as a limited liability partnership, its funding is entirely donation-based, meaning returns will go back into the fund instead of outside investors.

Bypassing the initial target of $500,000 the center has now raised over $650,000 so far from alumni donors.

As an extracurricular activity through the Student Real Estate Society, upperclassman will work as managers of the funds while underclassman put in time as analysts or observers.

"We're putting together a committee of students, seniors and juniors, to think through what their investment strategy will be," Taylor said.

Former Blackstone Managing Director and Villanova alumnus Glenn Alba will serve as a business fellow during the program's first year as the de facto chairman of the fund, charged with training students, who will then train underclassmen in the future.

Students will go through the motions as if it they were operating as a true FEC-filed investment fund, including full due diligence, despite not being required to as an LLP.

Typical investments will be small, just between $25,000 and $50,000, which Taylor said will pose a hurdle.

"It's not a huge amount of money so we're looking for investment opportunities that will let them participate for the educational experience," she said, adding a partnership also comes with access to student talent. "We're keeping it wide open. They could invest in a duplex in Bryn Mawr or in a large fund, whatever they see fit, if they can pitch it and get it improved."

Students chase after the chance to participating in hands-on experiential learning opportunities like the new fund, Taylor said, and often point to events like pitch competitions or site tours as the highlight of their time at Villanova.

"This is taking it to the next level," she said. "They're going to truly understand the full investment process, what it takes to look for a good deal, invest in it, monitor it and understand when things go wrong ... There's not a better way to learn it than to do it."

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