A private equity firm based in Palo Alto is taking on what it called “the Amazon effect.”
Consider that once dominant companies like Sears and JC Penney are filing for bankruptcy protection, or on the brink. It’s because these once household words have fallen badly behind — or never truly developed — technological-based operational techniques that behemoths like Amazon not only invented, but continue to innovate within and have mastered.
HGGC is the Palo Alto-based firm ready to take on the “Amazon effect.”
The firm announced recently that it will merge MyWebGrocer with Mi9 retail. Both companies are backed by backed by General Atlantic. The new company will be called Mi9. HGGC is a shareholder along with General Atlantic and Respida Capital. HGGC acquired MyWebGrocer in 2013.
HGGC CEO and co-founder Rich Lawson points out that Amazon spends 20 times as much on R&D that the other top 20 retail companies combined. If other retailers expect to compete, they simply must ramp up their own R&D and adopt the technologies, infrastructure, logistics and distribution strategies that have enabled Amazon to dominate the retail sphere like no other single entity in history.
Lawson added: “Retail is at a tipping point.” He went on to say that his firm has the technology to help those retailers still out there who are struggling to overcome the Amazon effect.
Mi9 Retail is a software provider based in Miami. It assists traditional companies manage merchandise, take and process orders, provides data analytics and point-of-sale technology. Now bolstered by the investment power and vast expertise of the HGGC team, the company is poised to help any retailer anywhere in the world do battle with Amazon — and win.
HGGC was founded in 2007 by former NFL quarterback and Hall of Famer Steve Young along with Richard Lawson, Jon M. Huntsman, Gregory Benson and Robert C. Gay. The firm concentrates its efforts on middle-market companies. It uses a strategy of acquisitions, leveraged buyouts and market recapitalization to bolster the entities it accepts into its portfolio.
Sectors where the firm concentrates its efforts include grocery sales, car dealers, insurance agents, marketing firms and others
Bloomberg provides a corporate snapshot of HGGC LLC, billing it as a private equity firm. The report shows HGGC specializes in a broad range of investment endeavors covering a comprehensive number of sectors. The firm’s ventures range from leveraged buyouts, acquisitions, and investments to recapitalization and restructuring. Sectors include business and financial services, manufacturing and industrial concerns, technology and software development, and healthcare. Although the firm primarily invests in North American companies, it is open to global opportunities.
The firm invests with the intention of HGGC LLC taking a majority position or controlling rights with a minority position. The investments typically range from $25 million to $125 million in companies with an EBITDA of $15 million to $75 million and a worth of at least $100 million.
Bloomberg lists the firm’s key executives and founders. Among them are Richard Franklin Lawson Jr., co-founder and chief executive officer, Robert Christopher Gay, co-founder, executive director, and senior adviser, and Lance Riley Taylor as chief financial officer.
In October 2018, BusinessWire announced that HGGC LLC added two new executive members and four associates to its team. The executives are Colin Phinisey, investment banking professional, and Christopher Guinn, executive director. The firm chose the additional members, all from blue-chip company backgrounds, to strengthen its talent pool for expected growth.
The announcement focuses on Colin Phinisey, the appointed capital markets expert. Phinisey comes most recently from Deutsche Bank Securities Inc., where he spent more than eight years. The firm expects Phinisey to guide them in developing best practices to further their financing efforts. Phinisey specializes in mergers and acquisitions, debt finance, and leveraged buyouts.
The interview reports that Lawson states his firm, HGGC LLC, has been involved in financing $4.3 billion in transactions, and he expects transactions to surpass that amount in 2019. Founded in 2007, the Palo Alto-based firm has additional offices in West Palm Beach, Florida, Salt Lake City, Utah, and Foxborough, Massachusetts
Randal Nardone is a prominent attorney who decided to change his career to finance. After starting his profession in finance at Thacher Proffit & Wood, he climbed the ladder by holding a senior position at BlackRock Financial and then later moved to Union Bank of Switzerland. While serving in a high capacity at one of the leading banks in Switzerland, the universe might appear like a loft target for the majority of people, but this was not enough for him. As a result, Randal Nardone made a huge move to establish Fortress Investment Group in 1998. The company has been experiencing tremendous growth since that period.
It is due to this latest development that has given him a chance to appear on the Forbes Billionaire list. Having a net worth of $1.8 Billion, Randal Nardone takes position 557 as the wealthiest person in the world, and all his wealth is self-made. His incredible riches is associated with its shares in Fortress Investment Group. On top of this, he has received more than $100 million in other cash compensation.
Currently, Nardon continues to work as the president of Fortress Investment Group. His come back to the organization in 2011 was altogether suitable, considering his initial role at the company. According to the report released on 30th June 2016, Fortress manages over $70 billion in alternative assets. All these assets are divided into private equity, liquid hedge funds, and also credit funds.
Apart from the noticeable financial accomplishment of Randal Nardone, there are other numerous achievements under his belt. For instance, in 2014, under his leadership, Fortress Investment Group received the award of hedge fund manager of the year from the Institutional Investor. Additionally, the HFMWeek awarded the company Managment Firm of the Year award the same year.
On top of that, the organization has been acknowledged and congratulated by the Institutional investor as the Discretionary Macro-Focused Hedge Fund of the Year” for 2012. It was also recognized as the Credit-Focused Fund of the Year for two consecutive years, which is 2010 and 2011. All this was just achieved together with the company’s latest achievement, as SoftBank Group acquired the company.
At only 51 years old, Nardon has accomplished a significant fortune. He has managed to make his success with the help of strong connections with other excellent investors and also a steadfast determination to his organization’s sustained success. Even though Fortress might no longer be an independent entity, his influence will live on with him as the president of the firm.
Randal Nardone is an entrepreneur and executive in the financial services industry. Today, he is the current co founder and principal of the firm known as Fortress Investment Group. Nardone has been able to achieve a lot of success as both a financial services entrepreneur as well as an attorney. His success has allowed him to become one of the wealthiest individuals in the United States. The financial publication Forbes magazine released its list of riches Americans and billionaires list. Randal Nardone was included in the most recent list. In recent years, Nardone has facilitated a deal where Fortress Investment Group was sold to an entity known as Softbank Group.
After completing his educational programs at both the University of Connecticut and Boston University, Randal Nardone began his career working in the legal field. His first experience was at the New York City based law firm known as Thatcher, Proffitt & Wood. At this firm, he worked as a regular attorney before being promoted to other high ranking positions. While working at the law firm, Nardone would eventually become a partner as well as the executive committee. Randal would eventually develop an interest in the financial services sector and look to pursue that path. Therefore, he left Thatcher, Proffitt & Wood and took a position at an investment firm.
When Randal Nardone first got involved in the financial services industry, he served as principal of Blackrock Financial Management. As the principal, he would play a major role in developing the firm’s products and services. He would also provide top level management of the firm as well. During his time at Blackrock Financial Management, he would help make it into a successful firm. However, he would look to pursue other opportunities in the field.
His next position in finance was at the firm UBS. Randal Nardone would serve as the managing director of the firm during his entire year there. While he was working at UBS, Randal would continue to build on his experience of providing sound management and leadership of an investment firm. He would regularly participate in helping the firm bring in new clients as well as its general expansion. Nardone would eventually leave the firm in 1998 and start up his own firm Fortress Investment Group.
With new ownership at the helm, the formidable Fortress Investment Group is looking to raise funds after a successful acquisition. Fortress’s first goal under their new owner Softbank, is to raise at least $2 billion in its first fund that is solely dedicated to direct lending. That being said, no one yet knows the players involved. The current undertaking is one that the company is not choosing to make public.
Never one for small plays, Fortress has also set a $5 billion dollar goal for what Bloomberg is calling its, flagship credit opportunities fund. The most recent version of that fund was closed in 2015 at exactly $5 billion. It seems that Fortress is ready to reinvest in that program.
A Company of Firsts
The Fortress Investment Group is a company that is not afraid of doing things that go against the established order and wander from the beaten path. It seems that Fortress is bent on being a company of firsts. When Fortress got its start, it was the first private-equity firm to go public. Now the company is becoming the first of these firms to delist.
It seems that the Fortress Investment Group is looking to start a new chapter in their brand’s life. This should not come as a surprise, considering that they have new owners who are looking to make some internal changes themselves. Interestingly enough, Softbank, the Japanese conglomerate now at the helm of FIG, had to agree to only limited control of the company for regulatory reasons. It is because of these regulations that FIG is still currently making all of the executive decisions.
There is no doubt in anyone’s mind that the Fortress Investment Group is changing. New faces are making appearances in big places. For starters, FIG recently promoted Josh Pack and Drew McKnight to managing partners in their credit group.
With every transition of power, there are gains as well as losses. Joel Holsinger stepped down from his role at FIG in March, becoming the first executive to leave the firm following the Softbank acquisition. While the future of FIG is still unknown, many are watching and waiting to see if success or a sinking ship is on the horizon.
In recent months Western Union has connected with PSI Pay, a provider of worldwide payment solutions, to get any money regulated the ewallet type of service for customers. This is a great concept for the Western Union that shows that the company is considering ways to grow as technology is changing.
PSI Pay is a United Kingdom-based platform, and the Western Union connection with ecoPayz makes it possible for people to get money transferred from the United Kingdom in an instant. The need for this type of money transfer is much more prevalent now that technology allows more people to connect with one another. People are traveling more, and they find themselves in places where they need to get money when they are away from their home base.
Western Union has always been the company that has specialized in these money transfers, but in the past, this was primarily done by going to a Western Union location. These locations still exist, but this cannot be the only method that people rely on when it comes to getting money to someone else. The e-money concept, along with PSI Pay and all other types of electronic currency is becoming much more prevalent. In order for a company like Western Union to remain relevant, there had to be a change in the way that business was being done.
The effort to connect with ecoPayz and PSI Pay shows that Western Union is conscious of the need for cross currency and across the border currency transactions. For a company that has been known for getting money to customers within a short time frame, this works perfectly into the platform that this company was already known for. It is not a new concept that they are exploring. By contrast, Western Union is simply focusing on expanding a core competency to a new environment where more people can benefit from these services.
For the Generation Z that depends primarily on technology for all of their various transactions, it makes sense to incorporate an e-money based solution where people can use electronic wallets to initiate transactions. This is an excellent growth strategy for a company that is known for helping customers move currency.
Equity First Holdings has been known for it’s great input in the journey towards development of companies financial solutions. The company has specialized in offering the best financial advice to it’s clients and has been known for commitment and oneness when it comes to matters finance. It has been known from across all parts of the globe because of the commitment it has been able to apply.
The company, since it started operating has kept on rising day in day out. It has tremendously took over all the others with alot of speed. The secret is that they have been able to invest with world’s most famous staff. People who have alot of experience in other industries.
Equity First Holdings is that company that has managed to help so many people earn respect globally. Their clients have been able to have an organized financial system and they have been able to spread roots in some of the biggest cities across the globe.
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The Oxford Club is an international group of business men and investors that offers members methods and strategies on how to invest wisely. Their time-tested methods often beat the stock market. They give advice on stocks, precious metals, real estate, mutual funds, and cryptocurrencies.
Their staff performs extensive research to find the best investments with good returns and little risk. The success of the group is due to their research and strategy. Below are their four main investment strategies the Oxford Club uses.
The Oxford Club recommends investors diversify and have a well balanced portfolio. They suggest investing in a number of different stocks and industries with different levels of risk. A balanced portfolio will have a number of different types of stocks. It might have blue chip stocks, speculative stocks, and foreign stocks.
Diversification means using different type of funds not just stocks. Other investments to consider are mutual funds, commodities, and bonds. Diversifying is important to increasing and managing investments wisely.
Knowing when to sell your investments or having an exit strategy is the second strategy the Oxford Club uses. Knowing when to sell and how is important before you purchase an investment. This lowers the risks and protects your investments. When an investment is doing poorly it time to sell and cut your losses.
The third strategy the Oxford Club uses is position sizing or the amount invested. Its special formula is used to determine how much to invest in a particular stock or investment. Its formula carefully balances investments by size and category.
The Oxford Club fourth strategy is to cut costs on investments for members. The staff finds ways for member to cut investment costs. It looks for funds that don’t have heavy fees and taxes on them. It helps members diversify their investments so they are not heavily taxed. Their strategies work to their members advantage.
The Oxford Club has 157,000 members around the world. It is in 130 countries. The founder believed that the best investments come from personal connections and not mainstream media. In 1992 the club published a book called The Tradition of Wealth. It is offered to all lifetime members.
In 1993, they sponsored their first Advanced Wealth Protection Seminar. It was held at Oxford University in England. The club publishes many investment newsletters to advise them of investments and other publications. For more information on membership call 888-237-0436.