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The Managed Fund Model

For investors who want exposure to mobile app returns without hands-on management, the managed fund model offers a turnkey solution. An experienced operator assembles and manages a diversified portfolio of subscription apps on the investor's behalf.

2 min readUpdated February 16, 2026

For investors who want exposure to mobile app returns without hands-on management, the managed fund model offers a turnkey solution. An experienced operator assembles and manages a diversified portfolio of subscription apps on the investor's behalf.

How It Works

  1. Capital commitment. The investor commits a capital amount (typically $300,000+) which is held in their own account — not transferred to the fund manager.
  2. Portfolio assembly. The fund manager sources, evaluates, and acquires 8–15 subscription apps across different categories and developer accounts. The investor approves each purchase.
  3. Ongoing management. The fund manager handles all technical maintenance, app updates, App Store compliance, payment analytics, and performance monitoring.
  4. Revenue distribution. All revenue flows directly to the investor's bank account via App Store Connect. The investor has full visibility into every transaction.
  5. Profit sharing. The fund manager earns a percentage of net profit — but only after the investor has fully recouped their initial investment. Until the investor reaches breakeven, the manager earns nothing.

Fee Structure

Phase Manager's Fee Investor Receives
Before full payback $0 (zero) 100% of net revenue
After full payback 20% of net profit 80% of net profit

This structure aligns incentives: the fund manager is motivated to select high-quality apps and manage them well, because their earnings depend entirely on the portfolio performing well enough to generate post-payback profit.

Investor Control & Exit Options

Full transparency: The investor has direct access to App Store Connect, payment analytics, and all financial data. Everything is auditable in real-time.

Asset ownership: The apps are purchased on accounts that the investor controls. If the relationship ends, the investor retains all their apps and the associated revenue streams. There may be administrative exit fees (similar to breaking any management contract), but the investor never loses ownership of the underlying assets.

Exit options:

  • Continue holding. Keep the portfolio running, collecting revenue indefinitely while the manager takes their profit share.
  • Self-manage. Take over management yourself or hire another operator. The apps are yours.
  • Resell. The fund manager can facilitate resale of individual apps or the entire portfolio to other investors or institutional buyers — often at higher valuations than the original purchase price, since the apps now have longer track records without marketing.
Key Advantage
Unlike traditional venture capital or startup investing, the managed fund model doesn't depend on a team's execution or a product finding market fit. You're buying assets that already generate revenue. The question isn't "will this work?" but "how long until payback?" — a much more measurable and predictable outcome.

Frequently asked questions

What is a managed app investment fund model?

An operator sources and manages a diversified app portfolio for investors who want hands-off exposure.

How are incentives aligned in this model?

Many structures prioritize investor payback first, with manager participation increasing only after breakeven.

Do investors keep ownership of acquired apps?

In well-structured setups, investors retain asset ownership and can hold, self-manage, or resell later.