Can You Really Trust a U.S. Sponsor? What Global Investors Must Know Before Investing Abroad

Why This Question Matters More Than Ever

If you're a global investor exploring U.S. private markets, you've likely asked yourself: Can I really trust this sponsor? It's a fair question. You're often wiring large sums of money across borders to a company you’ve never met in person, in a legal system you may not fully understand, for a project thousands of miles away.

It's not paranoia—it's prudence.

As the appetite for cross-border investing grows, especially among Latin American investors looking to preserve and grow capital in hard assets, understanding how to vet U.S. sponsors is no longer optional. It's essential.

What Is a Sponsor, Really?

A sponsor is the person or firm that originates, structures, and manages a real estate or private equity investment opportunity. In short, they’re the ones driving the deal—from sourcing properties to managing operations to communicating with investors.

In theory, anyone can call themselves a “sponsor.” That’s part of the problem.

There is no universal credential, license, or governing body that guarantees sponsor integrity. That means the burden falls on you—the investor—to know what to look for.

The Risks of Flying Solo

Let’s be blunt. If you try to navigate the U.S. private market alone—especially from abroad—you are almost certainly going to run into one of the following problems:

• Hidden fees or waterfall structures that heavily favor the sponsor
• Deals that look good on paper but lack true operational discipline
• Inexperienced or over-leveraged teams hoping to “figure it out” with your capital
• Sponsors with zero alignment—they earn money whether you do or not

That’s where investment managers come in.

Why You Need an Investment Manager—Especially as a Non-U.S. Investor

A qualified investment manager acts as your eyes, ears, and strategic brain inside the U.S. market. Their role is to vet sponsors, stress-test deals, negotiate favorable terms, and actively manage your exposure.

At Infinity⁹, we often say: There are no bad markets, just bad strategies.

Having a trusted manager means you’re not relying on glossy pitch decks or wishful projections. You’re relying on real due diligence, access, and structure.

Here’s what that looks like in practice.

5 Things to Look For in a U.S. Sponsor

1. Skin in the Game

Does the sponsor invest their own capital alongside yours? If not, walk away. You want alignment—not just ambition. At Infinity⁹, we prioritize co-investment and avoid sponsors who are only in it for the fees.

2. Track Record in Your Market Cycle

It’s easy to look good when the market is rising. The real test? How did they perform in downturns? What happens when interest rates spike, leasing slows, or construction delays emerge?

Experienced sponsors know how to adapt. Amateurs blame the market.

3. Transparent Communication

Do they provide regular reporting? Are their models accessible and explained clearly? Will they answer your questions promptly? If they can’t manage communication, they probably can’t manage your capital.

4. Operational Control

A surprising number of sponsors outsource the tough parts: property management, construction oversight, asset optimization. While outsourcing isn’t inherently bad, it should be clear who is ultimately accountable—and how oversight works.

At Infinity⁹, we dig into org charts, vendor contracts, and decision chains. Because if we don’t trust the process, we won’t recommend the project.

5. Legal Structure and Protections

This is where many international investors fall short. Are you investing in an SPV? Do you have rights as a preferred equity holder? Are your returns protected in a downside scenario?

These aren’t just legal questions—they’re strategic ones. A good manager negotiates terms that protect your capital first.

What a Great Investment Manager Actually Does

A professional manager isn’t just someone with a website and a logo. A real manager brings:

• Sponsor vetting processes that mimic institutional rigor
• Access to deals not available to the general public
• Tax structure optimization for non-resident investors
• Active asset management—not just passive oversight
• Reporting and performance tracking at the portfolio level

Most importantly, a good manager protects you from shiny but dangerous opportunities.

At Infinity⁹, we manage each portfolio as if it were our own capital—because it often is. And because your money doesn’t need a visa, we make sure it’s structured to thrive across borders, cycles, and currencies.

The Infinity⁹ Framework for Sponsor Evaluation

We use a proprietary 3-layer framework when evaluating any sponsor or investment opportunity:

1. Character and Alignment

Who are they when things go wrong? Do they communicate transparently, take responsibility, and act in the interest of capital partners?

2. Capability and Experience

Have they successfully executed similar projects at similar scale? Is their team qualified, seasoned, and well-capitalized?

3. Control and Downside Planning

What happens if things don’t go to plan? Can we take control if needed? Is our capital senior, preferred, or protected in a restructuring?

We don’t rely on hope. We rely on structure.

What This Means for You

If you're considering investing in U.S. real estate or private markets, ask yourself:

• Do I truly understand who the sponsor is and how they make money?
• Am I comfortable with the legal, tax, and operational risks?
• Do I have someone on my side who understands the U.S. market better than I do?

If the answer is “no,” the smartest next step is to work with a manager who does.

‍