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In commercial real estate, the sponsor is an individual or company in charge of finding, acquiring and managing the real estate property on behalf of the partnership. The sponsor is usually expected to invest anywhere from 5-20% of the total required equity capital. They are then responsible for raising the remaining funds and acquiring and managing the investment property’s day-to-day operations. In a limited liability company (LLC) or a limited partnership, the sponsor usually acts as the general partner or manager. The sponsor handles the distribution of payments, reports, communications and tax documentation to individual investors.