How We Create Wealth
Who We Are
We are TBG Holdings, a private equity firm in Ft. Lauderdale, FL founded as “The Birch Group” in 2000 to be a consulting firm working, to a large extent, with small cap private and public companies that wanted to grow, either organically, or through mergers and acquisitions. We saw that many public small cap companies ran into a shortage of capital, which forced them to let their accounting and finances fall behind. Our philosophy is, if you know the financial details of the business, you have a better chance of success. With this in mind, The Birch Group partnered up with R3 Accounting to form TBG Holdings Corp, incorporating the business expertise from 2 successful, innovative, and dynamic business and service companies. The combined entity, TBG Holdings, offers a fusion of cognitive thinking, deal structuring, growth strategies, financial structuring, and capital recruitment.
How We Differ From A Brokerage
A brokerage will call you to invest in a company that did business last year. They will tell you that it is doing even better this year and why they expect that to continue. They will discuss how it compares to others in their field and discuss trends and conditions. They charge you a commission to buy stocks in the chosen company and a commission when you sell. No matter how you do they make money. We do none of that.
What We Do
We identify startups that we believe will make tomorrows headlines and we preposition ourselves and our investors at a time before the rest of the world is much aware of what is coming.
This allows us to experience the explosive growth in valuation as the company expands into its market in the first few years. There is no better growth rate for companies than that which a successful startup achieves as it matures into its market.
Unlike a brokerage we are not looking for a short term percentage gain. We are looking for a long term multiple of our timely principal investment.
Risk – Reward
This type of investment is not for everyone. Any time you are backing an as yet unproven company there are always the risk factors of management, continued funding and market acceptance of the product.
This is why only about 5% of all investors can even be invited to take part. You must be a sophisticated accredited investor with income or net worth requirements. You must demonstrate by this that you could sustain either a complete loss or a longer than expected return.
For those that meet these requirements and whom have an ability to get involved with the right start up early on, it can be very enriching.
You are being allowed to participate in the early on capitalization of a company with a new idea or product. In bygone years only investment banks and hedge funds got those first look opportunities.
So how do you manage your risk in the growth arena? Please note I said manage not eliminate. Total elimination of risk cannot be done and each individual investor must assess their own risk tolerance. If you have little or none then this type of investment is not for you.
There are several factors that help in reducing your overall risk exposure.
- Great Timeliness of The Launch Of The New Idea – Have you heard that timing is half of life? If the new company’s product or business is of a nature that there is a great need for it at the time, a certain amount of success should be inherent in the fact that its delivery solves a significant problem, or provides a service that is in great need at the time.
- The Basket Approach – This is old school growth company investment. You select several promising companies and spread your risk between them. The accepted wisdom here is that if one or two do not perform that well, surely the third will.
- Build A Venture Capital Relationship – Find a venture capital company with a history of taking care of their clients and work with them with a long term vision of how the investment company should grow and when they achieve expected milestones you can be sure of when to take profits.
- How We Do Things – First, how we do it at TBG Holdings. We identify a company that we believe will be disruptive in its field. By that we mean that it is so revolutionary, it will change how that type of business is done. We buy in, put our money up and we take as large a position as it takes to assure we can control its focus. We take the company to the next level – but with a caveat. We appoint one of our accountants as the CFO. We write the checks. We provide back office functions and marketing support. We call it “guard-rail” venture capital. While it does not eliminate all things that could go wrong, it does give us confidence that all funds are applied to exactly what the company needs.
After TBG has invested in the company and provided professional guidance and service we put our future into the deal.
Our future is our existing clients. Over the recent years we have accumulated well over 200 accredited client investors. The success these clients have has a direct effect on our firm’s future.
When we have the company fully ready to roll out and everything is planned only then do we offer our first level of investment to our existing clients. They get the lowest price that we offer anyone and upon the success of the venture they see the greatest return.
For that first level opportunity they must have faith in us to complete the plan. Quite often they must take our word for it that certain objectives will be achieved as presented. This requires a lot of trust that is core to our ability to achieve a good launch for the company.
This trust is based upon their history and knowledge of how we operate. Our communication with them is always available and their questions are always answered. They know we will look out for them as our vital partners in the venture.
Our Relationship with Our Investors
Building trust and achieving a long term understanding of how our value should grow as the company achieves its milestones is core to our and our investors success. Unlike short term broker investing where they constantly replace clients that have short term losses with new clients on another short term venture. Our relationships are long term. Our focus and the successful maturation of our venture company takes on average one to three years. You don’t need to focus on your investment with us all the time. We update the progress with press releases and notices that all our clients receive. We speak with you directly when milestones are achieved and always take your calls if you have questions. As the venture company progresses you gain a peace of mind about your investment that is usually unattainable in the short term trading market. This relationship built on trust and open communication is vital to our future enterprises as we need you our partners to be well satisfied.
Creating Wealth vs Short Term Profit
Even the best stock pickers sometimes choose a bad time to invest in a trading company. Everything from the economy to sudden disasters or armed conflicts of nations can affect the stock market short term. A well-chosen company can see its shares devalued for a myriad of causes. To stay on top of these changing elements is time consuming and stressful to you the investor. Making percentage gains on your wins and giving some back on your mistimed moves does not generally allow for huge increases in your portfolio’s value.
The way you create wealth is to identify the company as yet undiscovered by the masses and position yourself early on when you will get a valuation that should multiply on the slightest success of the company, you must have a long term vision that allows you to exercise patience. As the company progresses and you see it succeeding you increase your position or double down thus increasing the position and your potential multiple. This is how you build wealth.
Here at TBG Holdings, we have perfected the process and we look forward to the opportunity to partner with you in achieving your common goal of successful wealth creation for us both.
Our motives are the purest in intent: to make you wealthier, and to take some credit for it, and then do it with you again.
Life is a great adventure. There is nothing like being on the ground floor of an exciting new company. There is great satisfaction in seeing it become a success. As the rest of the world is discovering it, we are realizing a potentially life changing profit. We look forward to achieving this with you.
Sr. Vice President,
TBG Holdings Corp.