The real estate [opportunity] fund is not that much different from what these real estate companies have been doing for a long, long time,” said Phillips, now managing partner of an opportunity fund called the Pearl Fund L.P. For him, however, setting up a fund was uncharted territory.

Phillips worked with Kressig and a lawyer to come up with a workable structure. “It’s challenging, but I tell everyone to please note, it is doable,” he said. He hopes this year to raise million and spend it on up to 25 early-stage companies either in or willing to relocate to zones within a three-hour drive of New York City. Once the money is spent, he’ll raise another fund.