Smaller private investment firms?

Would anyone in the community know of any smaller (sa in terms that they are diversified globally but are located in the U.S? I am looking for firms that are invested in real estate(commercial), Stocks/bond, PE/VC, loans, "hard" assets, etc but are small. I would like to do research on how exactly they were started but I am not sure how to classify this type of Asset Management.

 

the endowment management companies for many schools offer buy-side experience within all of these assets. downside, though, is that the smaller the school, the less investment freedom.

In the war against you and the other qualified candidates out there, the best arsenal is to prove that you have outdone yourself.
 
najifa:
Kingdom Holding is located in Saudi not U.S. and owened by Prince Alwaleed bin Talal.

I understand this. btw "Alwaleed: Businessman, Billionaire, Prince " is a good book and the inspiration to my question.

Clever got me this far Then tricky got me in Eye on what i'm after I don't need another friend Smile and drop the cliche 'Till you think I'm listening I take just what I came for Then I'm out the door again
 
Best Response

I have a friend who worked for Kingdom... They spun off part of Kingdom Hotels a few years ago.

In the US the equivalent would be a large family office or investment office of a wealthy American. Something like MSD Capital, or working directly for a billionaire like Carl Ichan... basically a holding company of a billionaire/family which invests in multiple sectors... these could potentially have fewer restrictions as compared to university endowments, but would probably be more subject to the whims/interests of the founder.

I suppose acquisitions at a large US conglomerate (public or private) might have a similar deal making environment, but without the co-investments and list securities investing.

 
Relinquis:
...these could potentially have fewer restrictions as compared to university endowments, but would probably be more subject to the whims/interests of the founder.
not only that, how much direct investment do endowments do? Wouldn't want to get stuck doing nothing but fund-of-funds type work.
 

I want to get away endowment funds and the big names that have been mention above. I am looking for firms that were started with little to none outside investment such as how hedge-funds are started.

Also how would one classify this type of AM?

Clever got me this far Then tricky got me in Eye on what i'm after I don't need another friend Smile and drop the cliche 'Till you think I'm listening I take just what I came for Then I'm out the door again
 
oracle:
I want to get away endowment funds and the big names that have been mention above. I am looking for firms that were started with little to none outside investment such as how hedge-funds are started.

Also how would one classify this type of AM?

Well... Kingdom was started because AlWaleed's family own a country... it's not like it was some entrepreneurial venture...

If you're asking how hedge funds or other investment companies are started that is a different thing entirely. Usually they are spun off from larger firms, set up by professionals who saw an opportunity in a sector and had the relationships to raise capital to do deals or raise a fund. Read King of Capital to see how Blackstone was started. Basically the founders were good investment bankers who saw an opportunity to sponsor LBOs for their employer, who didn't want to get into the business. They decided to go on their own and do their own deals. They had to pay their previous employer 50% of their advisory revenues for the first 3 years.

As to firms started without outside investment, then by definition you are talking about billionaires who made their money elsewhere. MSD Capital is the investment vehicle for Michael Dell, of Dell Computers... Even Warren buffet used external capital, he started investing for his clients as a broker and then set up a hedge fund... he followed that with a holding company after he acquired a textile company called berkshire hathaway... the rest is history.

I'm not sure what you are asking about. Are you looking for somewhere to work that is less institutionalised, but does direct deals? Are you looking to understand how these investment companies came to be?

 
Relinquis:
oracle:
I want to get away endowment funds and the big names that have been mention above. I am looking for firms that were started with little to none outside investment such as how hedge-funds are started.

Also how would one classify this type of AM?

Well... Kingdom was started because AlWaleed's family own a country... it's not like it was some entrepreneurial venture...

If you're asking how hedge funds or other investment companies are started that is a different thing entirely. Usually they are spun off from larger firms, set up by professionals who saw an opportunity in a sector and had the relationships to raise capital to do deals or raise a fund. Read King of Capital to see how Blackstone was started. Basically the founders were good investment bankers who saw an opportunity to sponsor LBOs for their employer, who didn't want to get into the business. They decided to go on their own and do their own deals. They had to pay their previous employer 50% of their advisory revenues for the first 3 years.

As to firms started without outside investment, then by definition you are talking about billionaires who made their money elsewhere. MSD Capital is the investment vehicle for Michael Dell, of Dell Computers... Even Warren buffet used external capital, he started investing for his clients as a broker and then set up a hedge fund... he followed that with a holding company after he acquired a textile company called berkshire hathaway... the rest is history.

I'm not sure what you are asking about. Are you looking for somewhere to work that is less institutionalised, but does direct deals? Are you looking to understand how these investment companies came to be?

Thanks for your reply, good stuff. To answer your questions a little bit of both. My goal would be to work for these types of investment firm and than to someday branch out on my own. I figured if I could understand how these types of firms where started and possibly get employed by one than I would have good direction in terms of starting my own someday. Currently I am working part-time for a small start-up fund and going to school and I have an opportunity to go and work for Edward Jones as a Financial Adviser so I am trying to also pick my "platform" that would help me accomplish my goal of doing my own thing.

Clever got me this far Then tricky got me in Eye on what i'm after I don't need another friend Smile and drop the cliche 'Till you think I'm listening I take just what I came for Then I'm out the door again
 

Most people who start investment companies need two things (ideally):

1 - A good investment history. 2 - Ability to raise capital.

Also, the guys that start these firms tend to have worked for one of the larger banks or investment companies and have been successful there before starting their own firm.

Those two are hard to come by unless you have 15+ years experience.. most guys I know who have started their own investment firms have been in the 20-25 years experience range (i.e. in their mid-late 40s, or significantly older) with a few exceptions... its not common for people to start their own investment company. most people in the industry are career oriented and want to work a high paid job.. they are risk averse... it's also difficult to return to the industry at a similar level if you have tried to start your own firm and failed (either your firm fails or it goes nowhere).

Also, in finance you can make a lot of money working for someone else, so a lot of people don't see the point in starting their own firm.

 
Relinquis:
Most people who start investment companies need two things (ideally):

1 - A good investment history. 2 - Ability to raise capital.

Also, the guys that start these firms tend to have worked for one of the larger banks or investment companies and have been successful there before starting their own firm.

Those two are hard to come by unless you have 15+ years experience.. most guys I know who have started their own investment firms have been in the 20-25 years experience range (i.e. in their mid-late 40s, or significantly older) with a few exceptions... its not common for people to start their own investment company. most people in the industry are career oriented and want to work a high paid job.. they are risk averse... it's also difficult to return to the industry at a similar level if you have tried to start your own firm and failed (either your firm fails or it goes nowhere).

Also, in finance you can make a lot of money working for someone else, so a lot of people don't see the point in starting their own firm.

Yeah unfortunately I am one of those people who want to fail or succeed by their own hand. I have an entrepreneurial mindset and I've always had an entrepreneurial mindset even when I was younger. So I am sure this is the route for me. I don't mind working for someone for 5yrs but I have no desire to make a career out of climbing the corporate ladder;the ultimate goal is to "do my own thing". In my eyes it is easier to work for someone, they tell you what to do and you do it end of story. Who wants that? I don't. Honestly I am surprise as to how many "bright" people just choose to climb the ladder as oppose to doing their own thing.

Anyway back to the OP, if you had to classify the firm we have been talking about what would you call them? Diversify Alt. investment firms?

Clever got me this far Then tricky got me in Eye on what i'm after I don't need another friend Smile and drop the cliche 'Till you think I'm listening I take just what I came for Then I'm out the door again
 

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