Definition
Syndicate
A group of investors who follow one lead into private deals, investing deal by deal rather than through a blind pool.
A syndicate is a standing group of investors who receive deal flow from a lead and choose whether to participate in each opportunity individually. Unlike a fund, there is no committed capital and no blind pool: the lead sources an allocation, presents it, and whoever wants in funds that specific deal, usually through an SPV formed for the purpose. This structure is why syndicates dominate angel investing: members get exposure to deals they could not access alone, with per-deal discretion, while the lead can write a much larger cheque than their own balance sheet supports. The lead is typically compensated with carried interest on each vehicle rather than management fees on assets.