Posts Tagged "ultra high net worth"

by Elaine ChavagnonThis article appeared on Nov. 4, 2013 in Family Wealth Report, and it was written by London based reporter Elaine Chavagnon, based on an interview she did with me last week.

Tiger 21, the peer-to-peer network for high net worth investors, is in expansion mode in Florida after unveiling a second group in Miami in September and currently preparing for the launch of a third in Palm Beach next month.

But besides tapping the expertise of wealthy individuals and families locally, the New York-headquartered organization is looking to deepen its footprint in the Sunshine State by drawing on the strong ties it has with Latin America, Charles Garcia, chair of the Florida group, told Family Wealth Report. 

One of the main factors linking Florida – which has for a while been regarded as a wealth management “hotspot” – to Latin America is the fact that 23 per cent of the state’s 19.3 million inhabitants are of Hispanic or Latino origin, compared to a US average of 16.9 per cent (source: 2012 US Census data). The US also exports 2.6 times as much to Latin America as it does to China, with the continent being Florida’s largest trading partner.

At the same time, some 15,000 Latin Americans are ultra-high net worth individuals representing at least $2.3 trillion in wealth, according to recent estimates. Indeed, last week Garcia met with Guillermo Romo, a Tiger 21 member in San Diego, CA, who is recommending Latin American individuals to Garcia he thinks would be good members.

“Romo confirmed that a lot of Mexican UHNW families are choosing Miami over Houston, TX, Dallas, TX, San Diego, CA, and Los Angeles, CA,” Garcia said.

And, in what Garcia views as an early sign that the economy in Florida is getting stronger – fueled in part by LatAm investors – the real estate market has improved considerably in recent time.

He said: “While in 2008/9 there were 68,000 empty apartments, all of that inventory has now gone and people are progressively building again. Some of that is because there are a lot of very wealthy Latin Americans – from countries like Brazil, Peru, Colombia, and Venezuela – that have invested heavily into real estate in Miami.”

LatAm focus

Having recently added several new Miami members from Latin America, Garcia said he has now decided to open the doors to LatAm families. Tiger’s Miami group includes seven Hispanics, representing about 33 per cent of these individuals (these are not Latin Americans, but US citizens of Hispanic descent or “Hispanic Americans.”)

“If you talk to the large wealth managers in South Florida, some of them are 100 per cent managing wealth from LatAm families. Others are managing money from South Florida families mostly, while others have more of a national practice,” Garcia said.

“I’m starting to invite people from Mexico, Guatemala, Costa Rica, Panama, Colombia, Peru; I have someone from Venezuela and the Caribbean. It gives us a better outlook as to what is going on in those countries,” he said. (Likewise, part of the reason Latin Americans want to join Tiger is because they want insights as to what’s going on in the US.)

However, the type of peer-to-peer experience offered by Tiger is “very unusual” for Latin Americans, Garcia said, as they’re culturally not as open about their finances as other members are perhaps used to.

“People often joke that everyone has three books: the book you show the government, the book you show your wife, and the book with the real numbers. Disclosing information to other Tiger members – even though it’s confidential – is very tough.”

Garcia added that he’s thinking of creating a Miami-based group comprised primarily of Latin Americans, or at least half Latin Americans and half US members. (The idea would be to have around six meetings in Miami, and then have about six in LatAm.)

“I’m also trying to recruit women, as there are some very prominent LatAm business women I’ve already spoken to whom I think would make excellent members,” he said.

About Tiger

By way of background, Tiger 21 is an acronym for The Investment Group for Enhanced Results in the 21st Century and its members collectively manage over $20 billion in total assets.

The organization has 225 members overall, 85 of which are based in New York; 40 in Canada (Vancouver, Toronto, Calgary and Montreal), and then there are around 100 across Los Angeles, CA, San Francisco, CA, San Diego, CA, Miami, FL, Washington, DC, and Dallas, TX.

Members are typically entrepreneurs, chief executives, inventors and other senior executives with backgrounds in financial services, real estate, industrial and consumer goods, legal services, entertainment and medicine.

The groups meet monthly to share investment ideas and experiences on a range of wealth-related issues (Garcia said 50 per cent of the meetings are focused on investments and the other half are focused on business, personal or family issues). Members also have access to investment opportunities including private equity, real estate and hedge funds.

“I think it’s interesting that when people accumulate a lot of wealth, they have a certain feeling of isolation,” Garcia said.

“When you have sold a business, for example, you might have a lot of money, but that doesn’t necessarily make you a good investor. The same skills that made you a good business person actually can be counter-productive in terms of managing your wealth.”

Growth

Garcia believes that, in order for Tiger to grow, the organization needs to recruit strong chairs that know enough about the financial markets, how to facilitate meetings and, above all, how to recruit.

Even though most of Tiger’s growth comes from member referrals, a lot of time goes into bringing new members on board, with the ultimate decision resting in the hands of the group in question.

“There is interest in opening groups in Atlanta, GA, and Chicago, IL, but you need to find the right person first,” Garcia said.

“One of the things I’ve been doing is interfacing with money managers and talking to them about Tiger – I met one earlier this week and they have already made three referrals to me. They have to understand that Tiger doesn’t compete with them; an average Tiger member already has three wealth advisors.”

Garcia said he aims to take the number South Florida members from 21 to between 40 and 50 by the end of next year.

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TIGER 21 members focus not only on improving their investment acumen, but also on leveraging the power of their wealth and networks for philanthropy, business opportunities, estate planning, and raising socially responsible children.  TIGER 21’s success is built upon the willingness of members to share their best thinking, experience, curiosity, and vast networks with their fellow group members, as well as the entire TIGER 21 community.  If you are interested in being part of the TIGER 21 South Florida chapter please call Charles Garcia at 561-703-2631 or by email to Charles.Garcia@tiger21.com; if you live in another part of the country call Harley Frank, Director of Membership at (212) 584-0222 or Harley.Frank@tiger21.com.

YPO (Young President Organization) and Vistage are global peer-to-peer groups that help chief executives become better leaders, solve their business challenges, and get better results. Both groups were started in the 1950s and combined have nearly 40,000 members in hundreds of countries.

I’ve been a long time member of both organizations, and always made better business decisions when I shared sensitive information with this group of trusted advisers who gave me invaluable feedback.

What I like about peer-to-peer groups is that it reinforces the fact that you can’t do it alone.

We often try to, imagining that we can see and know the things we need to know without the discerning eye of an outside point of view. I think it’s easy to get off track. Most of us know what our purpose is or what we would like our legacy to be, but we are constantly pressured from external sources to deviate from it. Or we are seduced by extrinsic rewards like money, power, and recognition that cause us to detour from being our authentic selves.

It’s much easier to just keep on doing what we are doing, and say to ourselves that — obviously — we are doing what we are doing because it makes us happy.

And that’s what drew me to “The Investment Group for Enhanced Results in the 21st Century”, better known as TIGER 21 — the premier peer-to-peer network for ultra-high-net-worth investors. TIGER 21’s over 220 members collectively manage more than $20 billion in investable assets.

TIGER 21 members, who have risen to exceptional heights within corporations or are entrepreneurs and have built and sold successful businesses, join TIGER 21 because they recognize these same business skills rarely translate into successfully managing one’s personal assets.

Founded in 1999, TIGER 21 has groups in New York City, Los Angeles, San Francisco, San Diego, Miami, Washington D.C., Dallas, Calgary, Vancouver, Toronto, and Montreal. It plans to launch a group in Palm Beach on December 5, 2013, and in Chicago and Atlanta by March 2014.

Members, who are carefully vetted with background and other checks, must have at least $10 million in investable net worth, and the average member has a $75 million net worth.

The members focus not only on improving their investment acumen, but also on leveraging the power of their wealth and networks for philanthropy, business opportunities, estate planning, and raising socially responsible children.

TIGER 21’s success is built upon the willingness of members to share their best thinking, experience, curiosity, and vast networks with their fellow group members, as well as the entire TIGER 21 community.

The core of the TIGER 21 experience is what occurs in group meetings, which are completely confidential and chaired by highly successful business leaders who facilitate the meetings. TIGER 21 meetings provide a unique forum for candid discussions and peer-to-peer learning among individuals facing the challenges and opportunities of managing their wealth and their daily lives. Members sharpen their investment acumen through critique and coaching, as well as exploring common issues of wealth preservation, estate planning and family dynamics.

The range of expertise and investment styles shared in a confidential and intimate environment of trust and transparency, offers members unique insights and immeasurable value not found anywhere else.

Members’ ages vary significantly. From young professionals in their early thirties to active and retired business owners in their eighties, the diversity of age ranges contributes significantly to the TIGER 21 learning environment.

Members also enjoy a very exclusive concierge service to help them with their travel, lodging, and entertainment, as well as purchases of cars, jewelry, art, insurance and other products and services.

When individuals join TIGER 21, they are encouraged to attend meetings in other cities to expand their relationships, as well as to attend the annual three day conference with their families where they can meet the other TIGER 21 members and a host of top rated resources oriented towards investments and the issues and opportunities facing ultra-high net worth families.

In this short video a longtime TIGER 21 member who rose to become Chairman of Fleet Securities, Inc. after Fleet Bank acquired Quick and Reilly Group, and that has relied on his group members to make key decision in his life.

And then there is the retired Vice Chairman of CIBC World Markets, who is also been a longtime TIGER 21 member and who describes why this peer-to-peer experience is such an important part of his life.

What’s clear is that aside from sharpening their investment acumen, they also meet as peers to discuss the important questions of their lives and to support each other during difficult times. They encourage each other to make the necessary course corrections to avoid the avoidable problems we all can get ourselves into.

Save us from ourselves so to speak.