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Old 08-25-2021, 02:12 PM
 
Location: Houston/Austin, TX
9,902 posts, read 6,607,441 times
Reputation: 6420
On the surface, this move isn’t huge. Moves like this happen often. However, being that Tilman is one of the most exciting developers and public figures in Houston, this move becomes interesting.

With the deal, Fertitta is acquiring Chasewood Bank which isn’t a huge bank. His comments:

“I’ve always enjoyed the banking business and it was an opportunity,” he told the Chronicle. “With all the employees and business people I know in town, I think it will be advantageous and I look forward to building it into a bigger, stronger company.”
https://www.houstonchronicle.com/bus...s-16409397.php

In other words, Fertitta is acquiring the bank for its license more than anything and plans to grow it as a start up and hiring some of this close partners.

Also, Chasewood owns a moderate real estate firm. This allows Fertitta to use it to grow portions of his portfolio

It’s also fairly common for billionaires with diverse portfolios to look for a finance arm. As the owner of a sports team, restaurant portfolio, casino and hotel chain, it becomes beneficial to have an internal finance arm to handle deals. Fertitta has also recently began a recurring SPAC arm which has landed him outstanding stock in DraftKings and other notable companies.

It’s also noted that he will have 100% ownership of the bank. As Fertitta Entertainment is scheduled to go public later this year, he won’t be the sole shareholder there anymore (although his 72% stake is extremely high control). In the end, it seems having full control of Chasewood transition his business into a financial increment firm and his portfolio has diversified enough to warrant this move.

Summed up, his portfolio got too large and diverse that he brought most of it public and turned it into a finance firm focusing on investments

Last edited by ParaguaneroSwag; 08-25-2021 at 02:23 PM..
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Old 08-25-2021, 07:04 PM
 
91 posts, read 76,394 times
Reputation: 61
Guy is getting so big he has to keep spending and now can "shell" even more.
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Old 08-25-2021, 10:36 PM
 
Location: Houston/Austin, TX
9,902 posts, read 6,607,441 times
Reputation: 6420
Quote:
Originally Posted by ninbud View Post
Guy is getting so big he has to keep spending and now can "shell" even more.
Basically. More so, his business empire is in so many industries and arm that it’s essentially an investment firm. Bringing it public and taking on a bank just certified this.
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