FDLD Private Equity

You Just Sold Your Business: The 5 Minutes that could Save you Millions

Sun, 09 Apr 2023 12:47:23 -0700

If you recently sold your business, you may have heard about defering or even eliminating some of your taxes by investing in a Qualified Opportunity Fund (QOF). If you're thinking "What the heck is a QOF?", this article is for you. In 5 minutes, you will (a) understand QOF's and the tax benefits available, (b) see if you qualify, and (c) have a QOF strategy that's right for you.

What is a QOF?

A QOF is a type of investment. Yep, it's that simple. It works kind of like a mutual fund - you invest money into a QOF "fund", and the manager of that fund selects the specific investments.

QOF's are unique in that:

only certain people qualify to invest in them (people who have a capital gain), and
only certain things can be invested in (companies &/or properties located in specific places)

QOF's were created to help encourage development within disadvantaged communities. People like you who just sold their business are typically sitting on cash, cash that would be perfect for investing into properties and companies located within these "opportunity zones". Realizing that people in your position are also facing a big tax bill in the coming year, the government incentivizes you to invest your newfound cash by giving you a way to avoid the tax! It's a win-win! You benefit with tax savings, and communities benefit by having access...Read More

The World's Wealthiest Investors See in 100-Year Trends. Do you?

Sat, 18 Feb 2023 14:28:43 -0800

John D. Rockefeller is widely considered the richest person in modern history. But how did he accrue such massive wealth? By choosing investments at the beginning of a 100-year trend.

Many investors make the mistake of investing in a company or sector once "everyone else is doing it". This type of investment strategy sometimes achieves good returns, but rarely achieves great ones.

What did Rockefeller Invest In, Anyway?

Rockefeller invested in oil & gas. Sound genius? It didn't in 1870! Back then, people were really only using oil in lanterns, so founding the Standard Oil Company - an entire company focused on oil production - sounded crazy to most! But Rockefeller saw what other investors did not - the capability of using fuel to completely change the way we powered the world. At the time, trains and boats were powered by steam, and horse-drawn carriages were the primary source of transportation for individuals. But that was all about to change...

By 1886 we had gas-powered cars, then diesel trucks by 1923, and diesel locomotives by 1924.

Rockefeller's Investment is Still Paying Off - Over 100 Years Later

Today, 153 years after Rockefeller's first big investment into oil & gas...

oil & gas represents a $5 trillion/year industry
gas-powered automobiles represent a $3 trillion/year industry
diesel engines represent a $212 billion/year industry
diesel locomotives represent a $14 billion/year industry

What is Private Equity?

Fri, 20 Jan 2023 10:51:49 -0800

What is Private Equity?

Private equity, often referred to as “PE”, is a vehicle for an individual to invest directly into a private company. In some ways, PE investing is similar to purchasing shares of stock online or through your broker. In both cases, investors purchase and hold an equity interest in a company. PE differs from publicly traded securities in that (a) it cannot be purchased via a public stock exchange, and (b) it is less "liquid" because it cannot be sold or exchanged whenever the investor desires.

How do you sell a PE Investment?

Investors in PE are typically invested in the company until some established "exit" set by the company's directors, such as the sale of the company to a larger company, whereupon all investors would sell their interests at the same time as the founders. For this reason, in most "investor pitches", private companies share the anticipated hold time and exit strategy with prospective investors to make sure there is alignment. Because private companies often communicate directly with their investors, PE investors are typically much more in tune with the business strategy and accomplishments of the companies they invest in. So when a private company can generate stronger returns on an annualized basis than most other investment options, hold time isn't much of an issue.

Is Private Equity Only for the Super Rich?

Do I Qualify to Invest in Private Equity?

Thu, 19 Jan 2023 13:35:56 -0800

To invest in private equity, you must qualify as an accredited investor under guidelines established by the Securities and Exchange Commission (SEC). There is not a test or certificate required. Most investors meet SEC qualification metrics based on income or net worth. In general, qualification requires that the investor is at least 18 years old, earns $200,000/year (if individual) or $300,000/year (if married), or has a net worth of $1,000,000. See full qualification standards here: SEC.gov .

Offering Announcement: Cantera Negra Tequila

Wed, 01 Sep 2021 11:04:00 -0700

FDLD Target Holdings I Limited Partnership

INCEPTION DATE:

September 15, 2021

INVESTMENT TYPE:

Equity

INVESTMENT OBJECTIVE:

Capital Appreciation

INVESTMENT HORIZON:

3-4 years

PRIVATE OFFERING ANNOUNCEMENT: Cantera Negra Tequila

September 1, 2021 | FDLD Holdings introduces an exclusive private equity offering for investors in Cantera Negra, a premium tequila brand that is neck-and-neck with the growth cadence of Casamigos tequila, which sold to Diageo for $1 billion in 2017, an estimated 30x multiple of gross revenue. Diageo has used this strategy to surprise competitors and capture significant market share twice now, repeating their 2017 success in 2020 with the purchase of Aviation Gin for $610 million. Diageo’s biggest competitors - industry giants like Constellation Brands, Bacardi, and Brown-Forman - are hungry for the right acquisition, which is an independent brand with strong growth that has reached the sales threshold of at least 80,000 cases per year and 25% growth the following year.

As the demand for tequila continues to outpace the growth of other spirits, premium tequila brands are the hottest target for major market players competing for the next big win.

Cantera Negra is the only tequila brand on the market currently on target to achieve these results. The fast-growing tequila brand exceeded 2020 sales projections, even amid a COVID-forced pivot from restaurant sales to off-premise sales outlets like liquor stores. Cantera Negra is now available in 25 states and on track to exceed...Read More

What is Pre-Expansion Funding?

Thu, 19 Aug 2021 08:34:20 -0700

Pre-expansion funding is a late-stage seed round of investing used by revenue-generating startups that require a calculated investment in order to secure intellectual property and/or prepare operations for scale. These rounds are always priced equity rounds, as the raise assists the company in establishing and formalizing its market value. Well-informed founders balance funding for this round between a strategic outside lead investor and a final friends and family round. Securing investment from the right private equity firm not only introduces the startup to new and broader sources of capital; it also expands the depth and breadth of its business network. Formally offering shares of this priced-equity round to friends and family mitigates risk to initial seed investors and provides validation to those who were on the fence during initial fundraising efforts.

Private Tequila Tasting

Wed, 09 Jun 2021 14:35:10 -0700

You are cordially invited to join us for a private tequila tasting in Austin, TX.

Join us for happy hour, margaritas, and a tequila taste-off. The taste-off contenders include premium tequilas: Cantera Negra, Casamigos, Patron, Corralejo, & Don Julio 1942.

Date: Wednesday, June 9th

Time: 5:30-7:30pm (arrive anytime)

Location: Rooftop @ The Catherine (214 Barton Springs Road, Austin, TX 78704)

Please RSVP though this RSVP FORM LINK. Guests must RSVP in advance so that your name can be placed with the concierge downstairs.

Thank you to the following sponsors: Waxxpot, FDLD Private Equity, Cantera Negra Tequila

Old Dominion's New Smash-Hit Song Features Boats, Breakups, and Cantera Negra Tequila

Mon, 24 May 2021 11:23:49 -0700

On May 21, Grammy-nominated country music band Old Dominion released smash-hit "I Was On A Boat That Day", scoring over 8 million listeners within the first 3 days of release. Achieving status as the 2nd most added song of 2021, the music video features boats, breakups, and Cantera Negra tequila.

What better way to kick off the summer than on a boat with great music and great tequila? You may just throw your phone in the water and not even notice that she walked away...

Old Dominion's upbeat style and approachable personality attracts fans in droves, with hits like "Break Up With Him", "Snapback", "Song For Another Time", "No Such Thing As A Broken Heart", "Make It Sweet", and "One Man Band". Their songs are perfect for singing along, which appears to be just what the doctor ordered this summer. Over 132 radio stations added the song to their rotation this week, loving the laid back breakup song that makes you smile from the inside out.

The band tossed around the idea for writing "Read More

Offering Announcement: Cantera Negra Tequila

Sun, 16 May 2021 11:15:12 -0700

FDLD Target Holdings I Limited Partnership

INCEPTION DATE: March 6, 2021

OFFERING CLOSED: Fully subscribed as of July 15, 2021

INVESTMENT TYPE: Equity

INVESTMENT OBJECTIVE: Capital Appreciation

INVESTMENT HORIZON: 3-5 years

PRIVATE OFFERING ANNOUNCEMENT: Cantera Negra Tequila

March 6, 2021 | FDLD Holdings introduces an exclusive private equity offering for investors in Cantera Negra, a premium tequila brand that is neck-and-neck with the growth cadence of Casamigos tequila, which sold to Diageo for $1 billion in 2017, an estimated 30x multiple of gross revenue. Diageo has used this strategy to surprise competitors and capture significant market share twice now, repeating their 2017 success in 2020 with the purchase of Aviation Gin for $610 million. Diageo’s biggest competitors - industry giants like...Read More