Private Investments: Not So Fast!

  • Step 1: The Problem

    Athletes are approached from all angles and each investment has a story that is compelling to them.

  • Step 2: The Solution

    When it comes to investments, success does not care about your relationship to the person - the numbers matter.

  • Step 3: Next Steps

    We have developed a system for athletes to easily understand if what they’re being offered is a good deal for them or if it is not.

Not So Fast!

Case Studies:

The Bad

  • An athlete's close friend had a dream of launching a clothing company and asked for a $100,000 investment initially.

    After a year of starting the business, the friend warned that without an additional $100,000, the company would face bankruptcy. The following year, the friend made the same plea for another $100,000 investment.

    Unfortunately, despite the athlete's investments totaling $350,000, the business ultimately failed.

    Had the athlete earned a 10% return on investment, that $350,000 could have potentially doubled in value in around 7 years.

  • An athlete was presented with an opportunity to invest in a business specializing in unique furniture.

    He decided to invest $100,000 in the venture.

    However, he quickly realized that his friend, whom he had known since high school, had ambitious plans but lacked the necessary skills and resources to execute them effectively.

    The business lacked essential elements such as a supply chain and manufacturing capabilities, crucial for success.

    As a result, the entire investment of $100,000 was lost.

  • A basketball player was approached by a well-known chef to collaborate on a restaurant, naming it after the player.

    However, the player realized that the chef didn't offer any ownership stake, essentially profiting from the player's name without providing anything in return.

    This situation highlights a classic example of a businessman exploiting a player's lack of experience in the business realm, which unfortunately happens all too often.

  • A player was approached by a friend with a vision to launch a business focused on cultivating the largest and highest quality tomatoes, aiming to capitalize on the popularity of ketchup.

    However, upon harvesting the tomatoes, they encountered a significant setback—there was no established supply chain for distribution.

    Consequently, the business collapsed, resulting in the player losing their entire investment.

    On a side not, the tomatoes failed to meet expectations, lacking the anticipated size and quality.

All case studies mentioned here are intentionally kept general, omitting names, specific figures, businesses, and other identifiable details to safeguard the privacy and security of the individuals involved.

Case Studies:

The Good

  • A football player brought us multiple real estate deals to analyze as he was on the verge of retirement.

    With our help, he was connected to an expert in the real estate industry. As a result, the player secured an investment in real estate that not only yielded the returns he was looking for but also provided consistent cash flow, aiding in sustaining a stable income during retirement.

  • After his playing days were over, an athlete expressed a desire to transition into full-time entrepreneurship and venture into business.

    With our assistance, he successfully opened multiple businesses without committing excessive capital all at once or investing disproportionately in any single venture.

    As a result, the player now holds a diverse portfolio consisting of real estate holdings, businesses he owns, and a traditional stock portfolio.

  • We work with several retired players who are seeking to replace their income. By strategically diversifying their investments across both private and public sectors, we construct portfolios tailored to achieve their desired income levels.

    Simultaneously, we aim to position these portfolios for growth during their retirement years, helping keep pace with the increasing cost of living.

All case studies mentioned here are intentionally kept general, omitting names, specific figures, businesses, and other identifiable details to safeguard the privacy and security of the individuals involved.

Disclosures

Private investments are subject to special risks. Individuals must meet specific suitability standards before investing. This information does not constitute an offer to sell or a solicitation of an offer to buy. As a reminder, hedge funds (or funds of hedge funds), private equity funds, real estate funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid and are not required to provide periodic pricing or valuation information to investors and may involve complex tax structures and delays in distributing important tax information. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees. Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For complete information, please refer to the applicable offering memorandum.  

Investing in securities involves risk of loss that clients should be prepared to bear.  No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment.  Past performance is not a guide to future performance.  The value of investments, as well any investment income, is not guaranteed and can fluctuate based on market conditions.

Diversification does not guarantee a profit or protect against a loss in a declining market.  It is a method used to help manage investment risk.