“David Tepper earmarks investments in growth companies via a private equity firm Andalusian Private Capital”
The firm, Andalusian Private Capital, was co-founded by one of Tepper’s most trusted executives — Jeffrey Kaplan, a former Merrill Lynch mergers head who helped his one-time boss make the record-setting $2.3 billion acquisition of the National Football League’s Carolina Panthers.
David Tepper’s investment plays are closely watched. In 2012 Institutional Investor’s Alpha ranked David Tepper first, for earning a $2.2 billion paycheck marking him the world’s 4th highest-earning hedge fund manager. David Tepper is worth about $14.5 billion
The billionaire investor is best known for his stock-picking prowess and recently David Tepper earmarks investments in growth companies via Andalusian Private Capital
The private equity firm, Andalusian Private Capital, has about $800 million in assets, which will invest on behalf of David Tepper and more than 10 family offices who are banding together to do their transactions rather than committing capital to private equity firms.
Family offices are private wealth management advisory firms that serve ultra-high-net-worth individuals (HNWI). Family offices have been adopting this approach because they believe big buyout firms are increasingly prioritizing asset growth over returns, according to Elizabeth Weymouth, the founder of Grafine Partners.
“In 2012 Institutional Investor’s Alpha ranked David Tepper first, for earning a $2.2 billion paycheck marking him the world’s 4th highest-earning hedge fund manager”
WEALTH TRAINING COMPANY
“They want to get closer to the source of alpha rather than being walled off from the action in a traditional private equity fund” said Weymouth, who was speaking in general terms, based on her firm’s specialty of investing in individual buyouts on behalf of wealthy investors, endowments and sovereign wealth funds. “These investors want more control; they want more flexibility in holding periods and they want superior returns”.
“Andalusian’s equity investments will range from $100 million to $500 million, with investments in the sports industry, technology, and media companies” – Wealth Training Company
David Tepper has backed other Appaloosa executives and portfolio managers who have gone on to form their own fund companies, including Eric Cole, Matthew Knauer, and Drew Casino.
David Tepper earmarks investments in growth companies, but he will be playing a passive role
In other words, David Tepper will not be involved day-to-day in Andalusian, which is located in the same Short Hills, New Jersey, an office building that has housed Appaloosa for decades and also uses an equine-related name, a practice that Tepper, 63, adopted.
Aside from David Tepper Andalusian Private Capital also has a minority investor, which will also play a passive role, according to the SEC filing.
The other passive investors are not named in the documents.
Andalusian’s equity investments will range from $100 million to $500 million, with investments in the sports industry, technology, and media companies — the firm has an affiliate called Andalusian Sports Partners, according to the filing. This company will provide sports-related advisory.