THE cONVERSaTiON michael SonnenfeldT · trademarked “Portfolio defense” in 2009. during the...
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FEATURED IN MAGAZINE THE CONVERSATION [ FOUNDER, TIGER 21 ] MICHAEL SONNENFELDT TPJ: TIGER 21 is a peer-to-peer learning group for high net worth individuals, founded in 1999. Where did the name TIGER 21 come from and why did you see a need for this type of business? MS: TIGER 21 is an acronym for The Investment Group for Enhanced Results in the 21st Century. When I sold my real estate firm in 1999, I was lucky enough to have achieved a second successful exit. The first time had been 14 years earlier, and I had not managed the investment of the first sale’s profits as wisely as I might have. I achieved success at such a young age, I didn’t appreciate how lucky I had been and how focused I should have been on preserving the wealth I had created. I had invested too much in risky ventures, perhaps given away too much to charities I wanted to support, and spent too much on homes I ultimately would sell at a loss. Simply put, I had not prepared to become a responsible wealth manager, and wealth preservation was simply not as important to me when I thought it would be so easy to recreate and grow wealth. After selling my second business and having more than replenished the assets that had been depleted after the first sale, I realized I needed to be much more deliberate about managing wealth wisely. I wanted to learn from successful peers who were struggling with similar issues, as well as from other peers who were further along and had lessons to share. For the prior eight years, while running my real estate business, I had belonged to a group comprised of fellow CEOs. A handful of other Members of that group had also sold their businesses. They, too, were excited to move to a new peer group for investors because remaining in a peer group for CEOs was no longer as relevant to their current challenges. The first meeting of TIGER 21 included six founding Members and we immediately knew that through our collective intelligence, we could help each other face the challenges and opportunities of managing our wealth. TPJ: Today TIGER 21 has nearly 200 High Net Worth Members and operates 18 Groups throughout the United States and Canada. Can you tell us about the Members and their backgrounds? MS: TIGER 21’s roots are with entrepreneurs who built great businesses from scratch and then, more often than not, had a liquidity event creating significant wealth that needed to be managed wisely. As we have grown, the process and disciplines we support and the programs and activities we offer have attracted world-class corporate CEOs along with senior partners in major financial, energy and real estate firms. For the most part, our Members are wealth creators, who have worked hard to get to where they are. The vast majority started with little or no assets. Collectively, our Members today manage more than $18 billion in investable assets. Our Members manage personal investment portfolios from $10 million to more than $1 billion, and everything in between. TPJ: How does the membership process work? Are all candidates for membership accepted? MS: Definitely not. TIGER 21 is not for everyone. There is a rigorous application process where Members are thoroughly screened, and are met by existing Members. Many of our new Members are referred to TIGER 21 by existing Members, but oftentimes someone reads or hears about the experience and applies for membership without knowing a Member. Meeting our financial requirements does not guarantee membership. Prospective Members must have the desire to learn from, and the capacity to teach, fellow Members something about their individual expertise and experiences. We’ve developed a careful vetting process for membership and each new Member is subject to background checks and non-disclosure agreements. TPJ: What is the Portfolio Defense, and how does it work? MS: Since the organization’s inception, the Portfolio Defense has been a major part of the membership experience — so much so that TIGER 21 trademarked “Portfolio Defense” in 2009. During the Portfolio Defense session, one Member presents his or her personal balance sheet, income statement and financial goals in context with the larger events in his or her life for review, analysis and feedback by the Group’s Members. Members give advice based on their knowledge of the presenting Member’s situation, but clearly draw on their own life experiences too. Oftentimes, when a Member is grappling with an important issue, the purpose of the discussion is not to focus on a single solution, but rather for the other Members in the Group to offer their own individual perspectives. We have found this to be a better process because the person grappling with the issue is exposed to a range of reactions and approaches. Now the individual can pick and choose from different aspects of various Members’ comments to shape an approach that best fits his or her needs. While the Portfolio Defense typically focuses on financial decisions and allocations and can zoom in on individual investments, it is as likely to explore multi-generational challenges a Member is facing, or estate planning or philanthropic issues the Members might be considering. Through over a decade of shaping this foundational exercise, we have designed the Portfolio Defense to provide as much value to the other Members of the group as it does the “defender” because, at its best, the process encourages each Member to reflect on their own situation, and allows the Portfolio Defense to be a catalyst in thinking about key issues. TPJ: Who are some of the more popular presenters and what are their areas of expertise? MS: We have had a countless number of popular presenters — many of whom are well-known financial figures who have participated in our Headliner series. These include the likes of George Soros, Carl Icahn, Izzy Englander, Steven Schwarzman, Mohammed El-Erian, David Rubenstein, Jim Rogers, T. Boone Pickens, and William Ackman, as well as non-finance-related speakers such as Dr. Mehmet C. Oz, Nicholas Negroponte, former U.S. Senator Gary Hart; and former U.S. Senate Majority Leader George Mitchell. We’ve also had lesser-known presenters (at least from a more public perspective), who are world-class experts that have addressed our individual Groups. We employ a full-time curriculum staff, which is in charge of making sure Members hear from the best and brightest in finance as well as other subjects of interest, to better help them navigate a turbulent world. TPJ: Has the mission and philosophy of TIGER 21 changed over the years, and if so how? MS: Since our inception, the TIGER 21 experience has centered on improving the Members’ investment acumen through critique and confidential sharing among fellow peers, as well as exploring common issues of wealth preservation, estate planning and family dynamics. Our success is built upon our Members’ willingness to share their best thinking, experience, curiosity, and integrity with their fellow Members, as well as the entire TIGER 21 community. While we continue to attract new Members, we adhere to this original mission. FALL/HOLIDAY 2012
Transcript of THE cONVERSaTiON michael SonnenfeldT · trademarked “Portfolio defense” in 2009. during the...
FEATURED IN
MAGAZINEMAGAZINE
THE cONVERSaTiON
[ FoundeR, TigeR 21 ]michael SonnenfeldT
TPJ: TIgER 21 is a peer-to-peer learning group for high net worth individuals, founded in 1999. where did the name TIgER 21 come from and why did you see a need for this type of business?
MS: TIGer 21 is an acronym for The Investment Group for enhanced results in the 21st Century.
when I sold my real estate firm in 1999, I was lucky enough to have achieved a second successful exit. The first time had been 14 years earlier, and I had not managed the investment of the first sale’s profits as wisely as I might have. I achieved success at such a young age, I didn’t appreciate how lucky I had been and how focused I should have been on preserving the wealth I had created. I had invested too much in risky ventures, perhaps given away too much to charities I wanted to support, and spent too much on homes I ultimately would sell at a loss. Simply put, I had not prepared to become a responsible wealth manager, and wealth preservation was simply not as important to me when I thought it would be so easy to recreate and grow wealth. after selling my second business and having more than replenished the assets that had been depleted after the first sale, I realized I needed to be much more deliberate about managing wealth wisely. I wanted to learn from successful peers who were struggling with similar issues, as well as from other peers who were further along and had lessons to share.
For the prior eight years, while running my real estate business, I had belonged to a group comprised of fellow Ceos. a handful of other Members of that group had also sold their businesses. They, too, were excited to move to a new peer group for investors because remaining in a peer group for Ceos was no longer as relevant to their current challenges. The first meeting of TIGer 21 included six founding Members and we immediately knew that through our collective intelligence, we could help each other face the challenges and opportunities of managing our wealth.
TPJ: Today TIgER 21 has nearly 200 High Net worth Members and operates 18 groups throughout the United States and Canada. Can you tell us about the Members and their backgrounds?
MS: TIGer 21’s roots are with entrepreneurs who built great businesses from scratch and then, more often than not, had a liquidity event creating significant wealth that needed to be managed wisely. as we have grown, the process and disciplines we support and the programs and activities we offer have attracted world-class corporate Ceos along with senior partners in major financial, energy and real estate firms. For the most part, our Members are wealth creators, who have worked hard to get to where they are. The vast majority started with little or no assets. Collectively, our Members today manage more than $18 billion in investable assets.
our Members manage personal investment portfolios from $10 million to more than $1 billion, and everything in between.
TPJ: How does the membership process work? Are all candidates for membership accepted?
MS: definitely not. TIGer 21 is not for everyone. There is a rigorous application process where Members are thoroughly screened, and are met by existing Members. Many of our new Members are referred to TIGer 21 by existing Members, but oftentimes someone reads or hears about the experience and applies for membership without knowing a Member. Meeting our financial requirements does not guarantee membership. Prospective Members must have the desire to learn from, and the capacity to teach, fellow Members something about their individual expertise and experiences. we’ve developed a careful vetting process for membership and each new Member is subject to background checks and non-disclosure agreements.
TPJ: what is the Portfolio Defense, and how does it work?
MS: Since the organization’s inception, the Portfolio defense has been a major part of the membership experience — so much so that TIGer 21 trademarked “Portfolio defense” in 2009. during the Portfolio defense session, one Member presents his or her personal balance sheet, income statement and financial goals in context with the larger events in his or her life for review, analysis and feedback by the Group’s Members. Members give advice based on their knowledge of the presenting Member’s situation, but clearly draw on their own life experiences too. oftentimes, when a Member is grappling with an important issue, the purpose of the discussion is not to focus on a single solution, but rather for the other Members in the Group to offer their own individual perspectives. we have found this to be a better process because the person grappling with the issue is exposed to a range of reactions and approaches. now the individual can pick and choose from different aspects of various Members’ comments to shape an approach that best fits his or her needs. while the Portfolio defense typically focuses on financial decisions and allocations and can zoom in on individual investments, it is as likely to explore multi-generational challenges a Member is facing, or estate planning or philanthropic issues the Members might be considering. Through over a decade of shaping this foundational exercise, we have designed the Portfolio defense to provide as much value to the other Members of the group as it does the
“defender” because, at its best, the process encourages each Member to reflect on their own situation, and allows the Portfolio defense to bea catalyst in thinking about key issues.
TPJ: who are some of the more popular presenters and what are their areas of expertise?
MS: we have had a countless number of popular presenters — many of whom are well-known financial figures who have participated in our headliner series. These include the likes of George Soros, Carl Icahn, Izzy englander, Steven Schwarzman, Mohammed el-erian, david rubenstein, Jim rogers, T. Boone Pickens, and william ackman, as well as non-finance-related speakers such as dr. Mehmet C. oz, nicholas negroponte, former u.S. Senator Gary hart; and former u.S. Senate Majority Leader George Mitchell. we’ve also had lesser-known presenters (at least from a more public perspective), who are world-class experts that have addressed our individual Groups. we employ a full-time curriculum staff, which is in charge of making sure Members hear from the best and brightest in finance as well as other subjects of interest, to better help them navigate a turbulent world.
TPJ: Has the mission and philosophy of TIgER 21 changed over the years, and if so how?
MS: Since our inception, the TIGer 21 experience has centered on improving the Members’ investment acumen through critique and confidential sharing among fellow peers, as well as exploring common issues of wealth preservation, estate planning and family dynamics.
our success is built upon our Members’ willingness to share their best thinking, experience, curiosity, and integrity with their fellow Members, as well as the entire TIGer 21 community. while we continue to attract new Members, we adhere to this original mission.
FALL/HOLIDAY 2012
