AEI Capital

What AEI Capital does

AEI Capital Corporation is a privately held real estate investment firm founded in 1970 and headquartered in Saint Paul, Minnesota. The firm specializes in net lease property investments, principally in healthcare and retail, and structures offerings to qualify under IRC Section 1031 like-kind exchanges as well as Delaware statutory trusts and joint ventures. Since inception, AEI has raised approximately $1.61 billion in investor equity across 152 real estate offerings and acquired 521 properties in 44 states, currently managing 234 properties on behalf of more than 6,800 investors.

The company's core product surface is a recurring series of single-tenant net-lease property offerings, supported by proprietary investor tools (including 1031/DST calculators) and an in-house asset management platform. Distribution is conducted through captive broker-dealer and registered investment advisor subsidiaries, allowing AEI to reach financial professionals and high-net-worth investors without relying on third-party placement agents. The firm also operates a joint venture product line targeting institutions and family offices, broadening the investor mix beyond individual 1031 participants.

AEI's business model is built on management fees on assets under management (approximately $1.65 billion in managed property), acquisition and disposition fees on new transactions, and ancillary investor servicing revenue. Revenue is effectively AUM-linked, with growth driven by net new acquisition volume and average ticket size. The model is operationally mature, supported by long-tenured leadership under co-presidents Marni Nygard and Paula Tillett, and remains a traditional sponsor rather than a technology-driven platform.

Name

AEI Capital

Legal name

AEI Capital Corporation

Website

https://aeifunds.com

Company type

Private

Founded year

1970

Operating status

Operating

Headcount range

11–50 employees

Short description

AEI Capital is a Saint Paul-based privately held real estate investment firm founded in 1970 that sponsors net lease healthcare and retail property offerings for 1031 exchange, DST, and joint venture investors, having raised $1.61B in equity across 152 offerings for 6,800+ investors.

Ownership category

akta.pro rank

Product category

Real Estate Investment Management

NAICS

Funds, Trusts, and Other Financial Vehicles (525), Other Financial Vehicles (52599), Trusts, Estates, and Agency Accounts (52592)

SIC

Investors, Nec (6799), Security Brokers, Dealers & Flotation Companies (6211), Real Estate (6500)

akta.pro primary industry

Real Estate Capital Markets Advisory (Debt/Equity Placement, Refinancing) (BPAJANAE)

akta.pro secondary industry

REITs & Listed Real Estate Securities (FSAAAKAD)

Keywords

• Net lease investments
• 1031 exchange services
• Real estate funds
• Commercial real estate
• Alternative investments

Headquarters

HQ city

Saint Paul

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure

Revenue model

1. Real Estate Investment Management: AEI Capital generates revenue through management of private placement fund structures and Delaware Statutory Trust (DST) offerings. The firm collects investor equity for participation in net leased commercial real estate investments, with revenue derived from fund management, acquisition fees, and asset management activities associated with their 152+ real estate offerings.
2. Service Charges: AEI charges various service fees including Brokerage/Custodial Re-Registration Fee ($50.00), Check Replacement Fee ($10.00), Stop Payment Fee ($20.00), and Document/Research Fee (up to $50.00 Per Hour, Minimum $100.00 Per Subpoena).

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

AEI Capital Corporation sponsors and manages private placement real estate funds, Delaware Statutory Trust (DST) offerings, and joint venture investments in debt-free net leased healthcare and retail commercial properties across the United States. Investors (accredited HNW individuals, family offices, and institutions, accessed primarily through licensed financial professionals) gain exposure to institutional-quality commercial real estate with contractual rents, capital preservation through property appreciation, inflation hedging through rent growth, tax benefits via 1031 exchanges and PIG/PAL passive loss strategies, and lower volatility relative to public markets. The firm has executed 152 real estate offerings since 1970 and was the first U.S. asset manager to obtain a favorable IRS private letter ruling for 1031 exchanges.

Product overview

AEI Capital offers a platform of real estate investment products centered on debt-free, net-leased commercial properties. The core offerings include Private Funds (private placement fund structures for healthcare and retail assets), 1031 DST Exchanges (Delaware Statutory Trust fractional ownership for tax-deferred property exchanges under IRS Section 1031), and Joint Ventures (co-investment alongside institutions and family offices). Supporting tools include the 1031 Capital Gains Tax Calculator and 1031 Exchange Date Calculator for investment planning, while the PIG/PAL Strategy provides passive income and passive loss optimization. The company was one of the first asset management firms to obtain a favorable IRS private letter ruling for 1031 exchanges and has successfully offered more than 110 1031 exchange offerings over its history.

Differentiator

Problem solved

Functional benefit

Products and services

• Private Funds
• 1031 DST Exchanges
• Joint Ventures
• PIG/PAL Strategy

Quantifiable outcome

• $1.61 Billion of investor equity raised since inception
• +4 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators6 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Realty Income: Largest publicly traded net lease REIT, including recent merger with Spirit Realty Capital. Comparable asset class focus (net lease commercial real estate) and tenant quality orientation, but at vastly greater scale and public-market valuation.
• W. P. Carey: Diversified net lease REIT with global single-tenant net lease assets. Comparable as a net lease real estate investor but operates as a publicly traded, internally managed REIT at substantially larger scale.
• Phillips Edison & Company: Public net lease REIT focused on grocery-anchored shopping centers. Comparable in retail net lease asset focus but as a publicly traded operator versus AEI's private placement sponsor model.

Emerging players

• CrowdStreet: Online private placement platform for commercial real estate offerings. Comparable product category (private placement real estate investments) but differs through digital-native distribution versus AEI's intermediary model.
• RealtyMogul: Online platform offering private placement REITs and 1031 exchange vehicles. Comparable as a non-traded real estate sponsor but with a more technology-driven, direct-to-investor distribution model.

Direct peers

• Capital Square: Direct DST and 1031 exchange sponsor specializing in multifamily and net lease offerings. One of AEI's former DST sales executives (Matthew B. Johnson) previously led North Central/Northeast DST sales at Capital Square, indicating direct operational overlap.
• Carter Exchange (Carter Funds): DST and 1031 exchange sponsor offering single-asset and multi-tenant net lease programs. Directly comparable as a sponsor serving financial advisors and accredited investors with tax-deferred real estate offerings.
• Inland Real Estate Group: Long-established private real estate sponsor (founded 1968) offering DST, 1031 exchange, and private REIT products across multiple property types. Comparable scale, age, and intermediary-driven distribution model to AEI.
• Passco Companies: Private real estate investment firm offering DST, 1031 exchange, and private placement programs across multifamily, office, industrial, and retail. Comparable as a sponsor of syndicated tax-deferred real estate products targeting financial advisors and high-net-worth investors.
• Kay Properties and Investments: 1031 exchange marketplace and DST/tenant-in-common sponsor. Overlaps with AEI in the same intermediary-led 1031 exchange advisory and product distribution business.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about AEI Capital