Investment Deal Exchange Network
Overview
The FOX Deal Exchange session at the 2011 FOX Fall Forum had the objective of supporting a community of like-minded family investors who are interested in actively investing together in private equity funds and direct transactions. All participants were FOX members. Six members provided an in-depth overview of the deals, and eight additional participants briefly summarized other investments. All 14 had a lead investment role in the opportunities.
Collaboration Among Families
A representative family office that has enjoyed successfully bringing families together to invest in various private equity investments over the past 20 years opened the session by addressing the advantages of collaborating with other families, including alignment of interests, ability to invest in larger transactions, flexibility to structure deals unique to family offices, and favorable tax structures. There was an emphasis on the importance of family offices partnering with “foxhole buddies” that have the same objectives.
Deal Exchange Investment Opportunities
- Family 1: Non-recourse funding to the healthcare industry through the acquisition of medical claim receivables from healthcare providers related to the treatment of the uninsured.
- Family 2: Investment in U.S. “community” banks and thrifts with less than $5 billion in assets.
- Family 3: Music publishing investment fund that acquires and manages a portfolio of music copyrights generating royalty income from television, film, radio, public performance, internet downloads, print and video games.
- Family 4: Late-stage venture capital and growth equity investments in commercial stage and profitable healthcare companies.
- Family 5: Two investment opportunities for the purchase, operation and ultimate sale of historic, multi-tenant office buildings in Southern California.
- Family 6: Development of small aircraft applying technology in new ways to reduce significantly transport costs.
- Family 7: Producer of metals through recycling and refining (primarily auto batteries).
- Family 8: Manage (1) distressed, sub-performing and performing commercial loans and other assets and (2) credit spreads present in the real estate and fixed-income markets.
- Family 9: Investment in commercial retail and office building in Wisconsin as part of an economic development effort.
- Family 10: MLP portfolio of publicly traded energy and infrastructure companies.
- Family 11: Private equity secondaries fund.
- Family 12: Distressed real estate, particularly land and condos, plus home builder refinancing in Arizona, California, Florida, New Mexico, and Nevada.
- Family 13: Real estate development including Kauai condo.
- Family 14: Investment-grade wine partnership.