How operators become investors: A 1.1B case study
Most 13-year-olds blow their Bar Mitzvah funds on video games or sneakers.
David Adelman made a different choice.
He handed his 2k to his mentor Alan Horwitz—founder of Campus Apartments—and bought into student housing near the University of Pennsylvania.
That single decision set in motion a career that would eventually put him at #1,623 on Forbes’ list with a net worth of 2B.
But what makes Adelman’s story particularly relevant if you’re studying private equity...
He didn’t follow the traditional path.
No Wharton MBA. No Goldman Sachs analyst program. No conventional PE apprenticeship.
Instead, at 25, he became CEO of Campus Apartments—and began building what would become a masterclass in institutional capital deployment.
The turning point came in 2006.
While his competitors were going public—American Campus Communities, Education Realty Trust, GMH Communities Trust—Adelman saw a different path.
“I didn’t think being public was the right move for us,” he explained in a later interview.
So he engaged a global institution and went on a roadshow searching for an institutional joint venture partner.
He landed GIC Real Estate—Singapore’s sovereign wealth fund—in a 1.1B strategic partnership that generated 450M in assets and launched Campus Apartments into the institutional league.
Think about what that required:
Convincing one of the world’s most sophisticated investors to back a private student housing company
Structuring a partnership that aligned long-term capital with operational growth
Building systems and processes to institutional standards
Creating flexibility to expand beyond undergraduate housing into faculty housing, graduate housing, owner-occupied condos, and mixed-use facilities
But Adelman didn’t keep going there.
In 2007, he co-founded FS Investments—shifting from real estate operator to alternative asset manager.
FS Investments (rebranded as Future Standard) manages 86B in assets, focusing on private lending, real estate, and other alternatives.
Then came Darco Capital—his family office vehicle.
Through Darco, Adelman has deployed capital into 90+ venture and growth transactions spanning climate tech, fintech, hospitality, spirits, consumer brands, sports, and media.
His portfolio includes household names like Fanatics, Wheels Up, and cred.ai—plus ownership stakes in the Philadelphia 76ers through Harris Blitzer Sports & Entertainment.
Why this matters:
In a recent CNBC profile, Adelman explained that family offices “can provide more expertise and more patient capital than private equity or venture funds.”
His capital deployment philosophy reveals three principles that translate directly to PE results:
1. Platform thinking over transaction-by-transaction approaches
Campus Apartments wasn’t just buying properties—it was building a scalable platform that universities could rely on for turnkey housing solutions.
Each asset strengthened the network effect.
2. Institutional capital requires institutional discipline
Before launching Darco formally, Adelman allocated capital into transactions recommended by contacts. “I realized very quickly that it’s probably a capital-losing prospect, to just allocate into a contact’s idea or because someone at your country club is participating in it,” he admitted.
So he built a formal evaluation process—the same rigor institutional LPs demand from PE firms.
3. Flexibility in sectors, consistency in approach
From student housing to spirits to sports franchises, Adelman’s portfolio companies span wildly different industries.
But the underlying approach remains constant: identify platforms with operational leverage, deploy patient capital, focus on long-term value creation, build strong management teams.
He looks for transactions with positive social impact—on the environment, underserved populations, or the community—and seeks synergies across his portfolio.
For example, Campus Apartments houses over 25,000 students, giving him early visibility into emerging consumer trends that inform his consumer brand holdings.
The most revealing insight?
In a Boardroom interview, Adelman described his capital deployment style this way: “We pride ourselves on not just being there when it’s 80 degrees and sunny, but when it’s cloudy and rainy, that’s when we shine.”
During the 2020 pandemic, when portfolio companies faced inventory financing issues, Darco provided lending and financing facilities—something typical venture funds couldn’t do.
That’s operator thinking applied to capital allocation.
What you can learn from Adelman’s trajectory:
His career proves you don’t need the traditional PE pedigree to master institutional capital deployment.
But you do need:
Deep operational expertise in at least one sector (his was student housing)
The ability to structure capital and attract institutional investors
Systems thinking—building platforms, not just buying assets
Patience to focus on long-term value creation over short-term gains
Flexibility to provide different types of capital when needed
At just 26, Adelman was already CEO. By his early 50s, Forbes estimated his net worth at 2B.
The path from 2k in Bar Mitzvah funds to a portfolio spanning real estate, alternative assets, and sports franchises reveals something crucial:
Top private equity investors think like operators first.
They understand how businesses actually work. They know how to create value beyond fiscal engineering. They can step in when times are tough—not just when conditions are favorable.
That’s what separates capital deployers from capital creators.
P.S. This past December, Philadelphia City Council approved Adelman’s 1.3B arena project for the 76ers in a 12-5 vote—proof he’s still building platforms, still thinking long-term, still executing at the highest level.
How This Applies to Your Journey
Adelman’s path reveals a clear pattern: deep operational knowledge + institutional capital skills + platform thinking = lasting results in private markets.
The strategy is proven.
But executing it while managing your current role, coursework, or career transition?
That’s where the gap appears for most ambitious professionals.
Breaking into top-tier firms in private equity, venture capital, or banking requires more than understanding the game.
It requires intentional positioning, clear communication of your value, and tactical execution.
How Sutton Capital bridges that gap:
We work with professionals who are committed to entering or advancing in private markets:
→ Personalized career mapping for PE, VC, and growth equity tracks
→ Case study preparation using real transaction frameworks
→ Interview preparation and pitch development
→ Direct introductions to active operators, investors, and mentors in the space
We’ve worked with professionals who’ve successfully transitioned into private equity, venture capital, and banking—or built the foundation to launch their own vehicles.
Next Step:
If you’re committed to making your move into private markets, let’s discuss strategy.
→ Book a complimentary planning session with our team
We’ll map out your specific situation, identify the gaps, and build your execution plan.
To your growth,
The Sutton Capital Team