Tiger 21, the peer learning group for wealthy investors, is deepening its footprint in Florida - and is turning its gaze to Latin America in doing so.

Tiger 21, the peer-to-peer network for high net worth investors, is in expansion mode in Florida after unveiling a second group in Miami in September and currently preparing for the launch of a third
in Palm Beach next month.

But besides tapping the expertise of wealthy individuals and
families locally, the New York-headquartered organization is looking to
deepen its footprint in the Sunshine State by drawing on the strong ties it has
with Latin America, Charles Garcia, chair of the Florida group, told Family Wealth Report. 

One of the main factors linking Florida - which has for a while been regarded as a wealth management “hotspot” - to
Latin America is the fact that 23 per cent of the state’s 19.3 million
inhabitants are of Hispanic or Latino origin, compared to
a US average of 16.9 per cent (source: 2012 US Census data). The US also exports 2.6 times as much to Latin America as it does to
China, with the continent being Florida’s largest trading partner.

At the
same time, some 15,000 Latin Americans are
ultra high net worth individuals representing at least $2.3 trillion in wealth,
according to recent estimates. Indeed, last week Garcia met with Guillermo Romo, a Tiger 21 member in San Diego, CA, who is recommending Latin American individuals to Garcia he thinks would be good members. 

“Romo confirmed that a lot of Mexican UHNW families are choosing Miami over Houston, TX, Dallas, TX, San Diego, CA, and Los Angeles, CA,” Garcia said. 

And, in what Garcia views as an early sign that the economy in Florida
is getting stronger - fueled in part by LatAm investors - the real estate
market has improved considerably in recent time.

He said: “While in 2008/9 there were 68,000 empty apartments, all of
that inventory has now gone and people are progressively building again. Some
of that is because there are a lot of very wealthy Latin Americans – from
countries like Brazil, Peru, Columbia,
Venezuela – that have invested heavily into
real estate in Miami.”

LatAm focus

Having recently added several new Miami members from Latin America,
Garcia said he has now decided to open the doors to LatAm families. Tiger's Miami group includes seven Hispanics, representing about 33 per cent of these individuals (these are not Latin Americans, but US citizens of Hispanic descent or “Hispanic Americans.”)

“If you talk to the large wealth managers in South
Florida, some of them are 100 per cent managing wealth from LatAm families.
Others are managing money from South Florida families mostly, while others have
more of a national practice,” Garcia said.  

“I’m starting to invite people
from Mexico, Guatemala, Costa Rica, Panama, Colombia, Peru; I have someone from
Venezuela and the Caribbean. It gives us a better outlook as to what is going
on in those countries,” he said. (Likewise, part of the reason Latin Americans
want to join Tiger is because they want insights as to what’s going on in the
US.)

However, the type of peer-to-peer experience offered by Tiger is “very
unusual” for Latin Americans, Garcia said, as they’re culturally not as open about their finances as other members are perhaps used
to. 

“People often joke that everyone has three
books: the book you show the government, the book you show your wife, and the
book with the real numbers. Disclosing information to other Tiger members –
even though it’s confidential – is very tough.”

Garcia added that he’s thinking of creating a Miami-based group
comprised primarily of Latin Americans, or at least half Latin Americans and
half US members. (The idea would be to have around six meetings in Miami, and then have about six in LatAm.)

“I’m also trying to recruit women, as there are
some very prominent LatAm business women I’ve already spoken to whom I think
would make excellent members,” he said.

About Tiger

By way of background, Tiger 21 is an acronym for The Investment Group
for Enhanced Results in the 21st Century and its members collectively manage
over $20 billion in total assets.

The organization has 225 members overall, 85 of which are based in New York; 40 in Canada (Vancouver, Toronto,
Calgary and Montreal), and then there are around 100 across Los Angeles, CA,
San Francisco, CA, San Diego, CA, Miami, FL, Washington, DC, and Dallas,
TX. 

Members are typically entrepreneurs, chief executives, inventors and
other senior executives with backgrounds in financial services, real estate,
industrial and consumer goods, legal services, entertainment and medicine.

The
groups meet monthly to share investment ideas and experiences on a range of
wealth-related issues (Garcia said 50 per cent of the meetings are focused
on investments and the other half are focused on business, personal or family
issues). Members also have access to investment opportunities including
private equity, real estate and hedge funds.

“I think it’s interesting that when people accumulate a lot of wealth,
they have a certain feeling of isolation,” Garcia said.

“When you have sold a business, for example, you might have a lot of
money, but that doesn’t necessarily make you a good investor. The same skills
that made you a good business person actually can be counter-productive in
terms of managing your wealth.”

Growth

Garcia believes that, in order for Tiger to grow, the organization needs
to recruit strong chairs that know enough about the financial markets, how to
facilitate meetings and, above all, how to recruit.

Even though most of Tiger’s growth comes from member referrals, a lot of
time goes into bringing new members on board, with the ultimate decision
resting in the hands of the group in question.

“There is interest in opening groups in Atlanta, GA, and Chicago, IL, but you need to find the right person
first,” Garcia said.

“One of the things I’ve been doing is interfacing with money managers
and talking to them about Tiger – I met one earlier this week and they have
already made three referrals to me. They have to understand that Tiger doesn’t
compete with them; an average Tiger member already has three wealth advisors.”

Garcia said he aims to take the number South Florida members from
21 to between 40 and 50 by the end of next year.