Gabe Hernandez | SABJ
Todd Brockwell is the president of 1900 Wealth, Jefferson Bank’s wealth management arm.
1900 Wealth Management LLC, Jefferson Bank’s wealth management arm, has raised over $26 million in less than two months through its investment in energy-focused private equity firm Formentera Partners.
1900 Formentera Fund II 2022 Series raised $26,031,945 in private equity from more than 50 investors since the first sale date on Feb. 21, according to a March 28 SEC filing.
Formentera Partners acquires and optimizes producing oil and gas assets in onshore United States basins, including the Eagle Ford Shale.
“We have a high level of confidence in this deal,” said 1900 Wealth President Todd Brockwell. “We put our name behind it. We’ve got about $1.7 billion under management, and so $26 million in one investment, that’s material.”
In 2022, 1900 Wealth launched its alternative investment platform, 1900 Direct Series LLC, “to provide diversification and enhance returns for the families where it’s a fit.”
1900 Kitsch 2023 Series, a fund in the Direct Series, also raised $2.5 million from 41 investors.
Kitsch is a top beauty brand that sells its beauty products in over 20,000 retail locations in 27 countries around the world, according to its website.
Brockwell said 1900 Wealth partnered with a consumer packaged goods specialist on the deal, which was “so oversubscribed we actually were cut back pretty strong, because everybody has such a high level of confidence in this investment.”
“This is a deal where we pass the hat,” Brockwell said. “It’s private equity, it’s a long-term play, but the returns are expected to be high single-digit, [or] mid-to-high single-digit multiples.”
“They have to be prepared for illiquidity,” Brockwell added. “Each deal that we do probably has a minimum lockup period of two to three years that it has to be patient money, but the returns will reflect that patient money.”
Brockwell told the San Antonio Business Journal that 1900 Wealth is also working on another private equity deal in the mid-market industrial space.
“We’ve got a long runway in front of us to grow the platform,” Brockwell said. “But we want to do it prudently, and we want to be successful with our investors’ money.”
1900 Wealth’s core clients are high net worth individuals and their families, according to Brockwell.
The 1900 Direct Series is led by Brockwell and Matt Richter, who joined 1900 Wealth in June as a senior investment advisor in alternative investments.