Driftwood Advisors, LLC

Driftwood Advisors, LLC provides discretionary investment advisory services exclusively to three affiliated pooled vehicles — the Development Fund, the Acquisitions Fund, and the Lending Fund — and reported approximately $568.83 million in regulatory assets under management as of December 31, 2025. The firm does not provide individualized investment advice directly to the funds’ limited partners.

The adviser focuses on hospitality‑related real estate (hotels, co‑living and mixed‑use projects), pursuing development, acquisition and lending opportunities through special purpose entities and generally holding investments for five to ten years; the Lending Fund targets roughly 10–15% interest or preferred‑equity returns and may receive a promote from syndicated investors. Transactions are commonly structured through SPEs and may involve syndication to outside equity investors, co‑investment vehicles (including EB‑5 and qualified opportunity funds), and operational arrangements with an affiliated hotel management company.

Distinctive operational and governance features include common control with related general partners, an expense‑sharing agreement that allocates about one‑third of shared operating costs to each Fund, and a management incentive vehicle that may own up to 10% of SPE general partners—arrangements that create related‑party economic exposures. The brochure discloses an SEC order finding the firm failed to timely deliver audited financial statements for prior fiscal years (resulting in a $115,000 penalty and a cease‑and‑desist obligation) and notes recent enhancements to address cybersecurity and generative AI risks.