With publicly traded royalty partnerships (Viper, Kimbell, Black Stone, etc.) gaining popularity, I wanted to raise the question: when is it beneficial to sell mineral rights in exchange for buying into one of these funds? I understand that you give up control and concentration when selling minerals but in return you get ownership in a diversified pool of acreage and in some cases (like Viper) prime acreage positioned for the drill bit.
Does anyone have any thoughts on this? What are the trade-offs? Can you 1031 into these funds? Anything I’m missing?