PE HUB Wire Highlights, 5.9.19: UPDATED


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

A-Rod talks deals, JLO Enterprises at InterGrowth; Edgewell buys Harry’s for $1.37 bln; Metalmark weighs Collagen sale

Greetings, Hubsters. I have returned from InterGrowth. What did I miss while I was gone?

Roughly 1,900 executives, including private equity firms, LPs, placement agents and service providers, descended upon the Hilton Bonnet Creek Hotel in Orlando for three days.

The highlight of the conference, for me, was Alex Rodriguez. The former professional baseball shortstop and third baseman sat down for an interview with Jason Brown, a partner at Victory Park Capital. (Brown will serve as InterGrowth chair for the Las Vegas conference in 2020.)

In truth, Hubsters, I didn’t realize that A-Rod was such a successful businessman. The baseball player founded A-Rod Corp in 2003 when he bought a single duplex in Miami. The motivation behind the deal? Rodriguez spoke about how he was a child of a single mother and his Mom would come home from her night job as a waitress (she worked days as a secretary) and count her tip money so they could make the rent. His family moved frequently because they couldn’t afford the rent, he said.

The first thing you do in Miami when you become successful is buy a car and a Rolex, Rodriguez said. To fund his buy of the duplex, the then 22-year-old Rodriguez sold his Rolex and made $10,000 to $12,000 signing  autographs. “That was the start of something really big,” he told an audience Wednesday filled with executives. “I went from a duplex to four units to 80 units and now over 12,000 units in 14 states,” Rodriguez said.

In addition to real estate, A-Rod Corp is big in wellness. The Coral Gables firm has invested in UFC-branded fitness centers throughout Miami-Dade County, TruFusionfitness and yoga studios, Energy FitnessIce Shaker water bottles as well Niyama Solleggings. Other holdings include Art SySnap IncOscarDi Di and Wheels Up.

Rodriguez said he considers A-Rod Corp a “small private equity family office” that employs several hundred people across 14 states. “It’s just our own capital with friends and family,” he said with a smile.

The duplex he originally acquired in 2003  he eventually sold a big return. “That was a big exit,” he said.

UPDATE: A-Rod Corp did not buy Jennifer Lopez Enterprises, an A-Rod spokesman said Thursday. A-Rod Corp and Jennifer Lopez Enterprises are partnering on a number of things, including NRG, a deal in which both are investors. There are very few minority owners in that space and Lopez is one of the few women active in eSports, the spokesman said.

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