This Is How TIGER 21 Is Helping Its Members during the Pandemic
In 1999, Michael Sonnenfeldt sold his business and struggled to find objective advice about how to manage his newfound wealth. Eventually, he identified a handful of other entrepreneurs in similar situations and decided to create TIGER 21. Through TIGER 21, members were able to share and learn from each other as they navigate issues related to legacy, family, philanthropy, and investment.
The organization has expanded significantly since that time, with people from many different backgrounds and from around the world sharing their experiences and helping to make each member’s impact meaningful and long-lasting. TIGER 21 aims to provide members with the insight and tools they need to become stewards of their wealth and forge secure futures for themselves and their families. Here is what you need to know about the organization and its efforts to assist its members during the pandemic:
TIGER 21 Adapts to the Needs of Its Hundreds of Members
TIGER 21 members consist of entrepreneurs, investors, and executives. The organization now has more than 800 members in over 30 markets. More than 40 chairs direct dozens of different groups that provide forums for candidly sharing experiences and offering impartial advice based on personal situations.
TIGER 21 views itself as a peer learning community that can help people create legacy plans, as well as invest more intelligently and handle some of the most common issues related to wealth preservation with grace. The community also embraces philanthropy and helps people make informed decisions about how to maximize the impact of their giving.
Recently, TIGER 21 began operating exclusively online in response to the COVID-19 pandemic. This shift has allowed the community to engage in new and unique ways. For example, the organization introduced Virtual Network Group Meetings on specific topics of interest for various subsets of members. These meetings allow members to engage with people they had not previously had contact with, which means they can expand their horizons even more.
The organization has also focused quite heavily on philanthropy in recent months in response to the pandemic. Recently, the organization held a COVID-19 TIGER 21 Philanthropy Roundtable for members to share with each other how they have helped their own communities and develop a member-wide philanthropic effort.
The New Opportunities Created by the Coronavirus Pandemic
The group has also been discussing how to change investment and wealth preservation strategies in the wake of COVID-19. Members have been meeting monthly or even weekly to discuss opportunities and plan together. Most members of TIGER 21 believe that a new normal is in store for the future rather than a true recovery.
Industries like entertainment, travel, and restaurants will likely be changed forever. However, technology stocks continue to hold up rather well and have been a mainstay for many members. The discussion about which companies may play a role in the reformation of the economy continues.
For the most part, TIGER 21 members have about 20 percent of their wealth in public equity and 24 percent in private equity. This trend represents a significant shift. A decade ago, most members had about 10 percent of their portfolio invested in private equity. A portion of this 24 percent is allocated to venture capital.
Investing in technology for members of TIGER 21 generally means private equity or venture capital, and individuals are paying close attention to performance. In the months to come, many great companies will likely emerge with bad balance sheets because of the economic downturn or credit problems. Members of TIGER 21 can help turn around some of these small- and mid-sized companies to drive economic growth.
TIGER 21 Members Maintain a Long-Term View on Portfolios
While the urge during this economy is to divest before investments go too far into the red, TIGER 21 members are not doing that. These individuals are taking a long-term view, which means weathering out the current economic downturn. Panicking only results in poor economic choices.
Members of TIGER 21 are also not aggressively investing right now as it is difficult to view anything as a real opportunity in this current market. Generally, only the most extraordinarily attractive prices are triggering investment. Members believe that the economic situation may get worse before it starts to get better. In other words, even though prices are low now, they could drop more before recovery takes hold.
By and large, TIGER 21 members are focused on preserving their wealth and making sure it outlasts the current economic downturn. For this reason, many members have turned to cash rather than investments as they ride out the storm. Some members are preparing for the worst-case scenario. To them, this means having sufficient cash on hand to avoid forced liquidations at inopportune times.
At the same time, some members are pushing for more liquidity because they expect that even better deals will be had down the road and they want to have the money available for them. One way to look at it is having one foot on the brake ready to slow down with another cautiously on the gas should and unbeatable opportunity arise.
For more information about Tiger21 and membership visit www.tiger21.com
Originally published at https://morganbrookcapital.com on September 14, 2020.
About the Author — Dylan Taylor
Dylan Taylor is Chairman & CEO of Voyager Space Holdings. Dylan is a Henry Crown Fellow of the Aspen Institute, Member of the World Economic Forum and Co-Founding Patron of the Commerical Spaceflight Federation. Earlier in his business career, Dylan was a Fortune 1000 executive serving in the roles of CEO, President and Board Director for multinational companies including the Jackson Mutual Fund Complex, UMB Bank, Colliers and Jones Lang LaSalle. Dylan holds a MBA from the University of Chicago and a Bachelors in Engineering with Honors from the University of Arizona where in 2018 he was named almunus of the year. Follow Dylan on Twitter and Instagram. Full bio available at www.dylantaylor.org