Target asset classes: Real Estate & Venture Capital
Minimum investment: $500 one-time initial contribution + $250/month ($3,000/yr) - open ended
Maximum investment: None
Minimum committment: TBD by member vote
First contribution deadline: Jan 1, 2021
At this point we should all be aware of the Black wealth gap. Furthermore, there is an extreme lack of Black representation and ownership in all asset classes. We need Black capitalized and managed investment funds. However, unlike with traditional funds, which are typically funded by institutions or wealthy individuals, we do not have the level of concentrated and institutional wealth within the Black community to pursue the same funding strategies. Instead, we must focus on more decentralized methods of funding.
It's actually very simple. Investment firms are dominated by white males because people who fund them (commonly called Limited Partners or LP's) are overwhelmingly white and male. Until we organize large pools of capital, Black investment managers and companies seeking funding who want to get to any significant scale will have to continue to rely on the benevolence of white men, who may throw us some scraps in the name of “diversity” or “representation,” but will never provide the level of funding we truly need to investment managers that truly care about empowering our communities.
Black people spend billions every year on travel, but represent a small percentage of owners in travel related businesses and properties. Imagine if all the trips we promoted through The Black Travel Club used hotels/resorts/airbnbs that we had ownership interests in. That's hundreds of thousands of dollars alone.
The overall mission of the Black Travel Investment Club is increase Black ownership in travel related businesses and properties, and to serve as an example to others who want to replicate the strategy with their own investment funds.
BTIC will generate income and capital gains through investments in:
- Vacation/short-term rental properties, hotels, and resorts in major tourist cities in the US and popular international destinations where The Black Travel Club hosts trips
- Travel-related businesses (hotel management software, travel apps, luggage brands, airline suppliers, etc).
- Short-term, real estate debt
Funds will be invested once at least $10,000 has been collected, and no single investment will make up more than 10% of total assets under management without a majority vote by club members.
BTIC will be managed by 1-3 managers/administrators who will handle day to day operations and overall portfolio management, with major decisions on how the club is operated subject to majority vote. Each member will get one vote, no matter how much they've invested to prevent any one person from dominating the club.
Accounting/Tax preparation will be outsourced to a qualified CPA.
CLICK HERE to apply to BTIC (be sure to enter "Black Travel Club" for "How did you hear about us?").