EMAIL DETAILS

HB,
Just wanted to update you on my progress out here in LA. I've added a few irons to the fire since the last time we spoke.

I started a long/short hedge fund this year. My company, Playa Vista Capital Management, is the GP of the fund. I was able to round up a few hundreds thousand from friends, family and former Morgan Stanley clients and, in conjunction with my own personal capital, put the money to work in July. I'm talking with some small/mid sized family offices, but man are they slow to move! The investment strategy is focused on deep value/ special situation equity plays in North America. The portfolio is comprised of 10 positions or less with a 6% annual hurdle and no AUM fee, all carry.

The other venture is a private equity fund that's focused on developing commercial real estate in the Coachella Valley. I'm the GP alongside a former KZ Colonel who's now in Orange County, CA. We own an EB-5 Regional Center (still waiting on USCIS for our designation) and are using it to source EB-5 capital throughout KZ and surrounding regions to develop a hotel and restaurant out in Palm Desert. The cost of our EB-5 capital is insanely cheap and we will have it locked up for 5 years, so we are using it to take a controlling equity position in the venture, and will layer on traditional debt to complete the capital stack. We have another equity capital partner on the team who's an experienced hotel developer, and have a structured buyout in place to take him out after stabilization, making us the sole owners.

Anyway, I'm really excited about it all. Business school will be over soon; I have always appreciated your support and hope we can figure out how to join forces one day.

How are things going with you? Hope everything is going well, one day at a time...

-BL

Sent from my iPhone