Were are these investors coming from?

[white]

I have been in the nightclub industry for the past 8 years. My partner and I are branching out into larger markets with a higher profile. The reason for this thread is concerning investors. Everybody shy's away from the nightclub industry unless they really know the industry especially in these economic times. I see these multi-million dollar clubs open all around me and wonder, who are these people willing to invest? Were are they found? I have been working on a nightclub in the Las Vegas market, in a major hotel and even getting somebody interested is very difficult, even though the concept has several successful locations. Any response with this thread would be appreciated.

[Ruben]

I have been in the nightclub industry for the past 8 years. My partner and I are branching out into larger markets with a higher profile. The reason for this thread is concerning investors. Everybody shy's away from the nightclub industry unless they really know the industry especially in these economic times. I see these multi-million dollar clubs open all around me and wonder, who are these people willing to invest? Were are they found? I have been working on a nightclub in the Las Vegas market, in a major hotel and even getting somebody interested is very difficult, even though the concept has several successful locations. Any response with this thread would be appreciated.

Many of the times, these guys that do invest have already done business with that owner so they are willing to invest. Also many of the times its the mob or biker gangs like hells angels. i know here in Toronto many are ran by hells angels and they have some of their guys being the front end of the place while there are in the back end. Vegas will be Vegas, people will still spend no matter what! Unless we really go into a financial crises then you might see a huge impact.

Which place in Vegas and Florida ? Maybe we can all come to your club for the Nightclub Convention in March :D

[ca. club owner]

It all comes down to who is the primary person or people pushing to open the club. Because at the end of the day in this business for cash its all on who you know. I agree with some of what the guy before me posted. Some has to do with, having done business with some investor before. The mob part I kinda dont bother with. For one its not the 50's or 60's.. Yea it may be big in canada, but here in the states. Times are a lil different. For starters sports figures are making ALOT more cash now than before. As well as younger, an just about 75% of sports figures are willing to invest into some kinda club one time. Just to be apart of it. An if you get one NBA guy on board, he calls a few others then they call a few NFL buddies an next thing you know you have 10 million to work with..

Yea there are still other ways of getting cash to open up a club, but it all comes down to what i said at 1st. WHO is driving the concept to get the money. Thats the main thing.. In this business people invest in the person more than the concept.. " can this guy pull this off " thats what it comes down to.. An vegas is a lil different, because alot is where you are putting the club. What casino, is it an old place like Imperial Palace or is it the hot spot like the Rio.. There are alot of factors involved..

[white]

ca. club owner: I have to agree with your post that for the main part mob influence doesn't play a factor anymore, on the fact that everything is turning a little more corporate. Also, in Vegas you are correct that which casino your in does play a major factor. The project I'm working on is in the Venetian and compared to other major nightclubs the investment is a fraction of the cost. Concerning the athletes that are willing to invest, that is one way to go. I see the downfall of investors like that to be they want to be involved to say they own a nightclub and almost look at it as a place were they can go crazy with there friends, giving away drinks and/or bottles, and not treating it like a business.

If there are any investors who read these posts I would love to hear your thoughts.

[ca. club owner]

Yea I hear you on sports figures. I have dealt with them an still do for certian investment stuff.. But when it comes to a club, you just have to make sure everything is in writing. Even the amount of " rope " they have.. Most dont really bother it to much because its a business. They know that anything given away is a loss.. yea maybe the 1st week or 2 they maybe in there. But for the most part. They have to many other things going on. It really is an investment to them.

As for the casino you are working in, you got some heavy competion in there with TAO. You have got to have a real good concept, that place stays a hot spot there. The Foundation room in the mandalay bay is one of the spots I go to most when I am in vegas. If you want to find some people with cash. Go there on Friday or Sat night. Its a membership night club, its only open to the public on monday's. But if you know vegas well enough you should be able to get in. Lot of money in there, trust me..

Money Talks In All Languages...

[emallay]

Many clubs are now financed through LLC structures using high net worth individuals. That allows the operator / general manager to attract people who individually do not need to put up all that much money. In return, though, the investors get to call themselves an 'owner', typically get some admission-related perks, etc.

If the venue is a success, the investor gets a solid ROI. If the venue at least holds its own, the investor gets *something* back, plus the ego-benefits that go with being an 'owner' of a nice place.

Such deals are often structured where the GP gets little or no returns until the investors have fully recovered their initial investments (ie, accelerated return), and thereafter the GP starts getting its stake. In such deals the GP will often put up no cash at all (or only nominal amounts).

Cheers,

Eugene.

[heech]

Can't for the life of me figure out how to send a PM on this site, or I'd drop you a note directly, white.

I'll just say I have some capital that I'm looking to put to work, but I also have zero experience in the entertainment/hospitality industry (uhm, other than the fact I enjoy being entertained and hospit...ed). My background is in technology and finance, and I have years of experience investing in startup businesses as an angel investor.

So, frankly, I'm interested in seeing whether this path makes sense for me. In the technology circles I'm usually in, angel investors are somewhere between silent partners + active managers. That's the kind of experience I'd like to duplicate. Put up money (say, $200-400k range) to help an experienced + proven management team get going with a project, for a substantial share of equity. Have *some* management input along the way.

Heck, I should probably start a new thread about this... But just for anyone in the market... I'm interested in opportunities along these lines in Northern Cali (Sacramento/SF Bay). I'd consider Vegas as well... just anywhere that I am at least somewhat personally familiar with the marketplace, and can keep an eye on my investment.

[mrgreen]

Hi,
I am an experienced nightclub guy in a medium sized market with a great economy in NC. We have a lot of fairly trendy/attractive spots that have done well here. However, we run into a lot of "new" bar owners who do not experience longevity based on their lack of experience. My business partner and I have a combined 31 years of experience in bartending, management, dj'ing, and marketing of restaurants (fine dinging down to sports bars), High End nightclubs, and trendy lounges. Our goal is to move forward on our own now.

We are in the process of reaching out to investors that are interested in seeing good ROI in this "struggling" economy. I am having trouble figuring out how to structure the corporation so that our investors will feel comfortable in our ventures. We are also trying to find investors that may not live in the market but could see the potential of a still somewhat robust economy in a medium sized city. This would take a vision of understanding how some new replicable concepts in the area could yield great returns.

[NewBar]

I have been in the nightclub industry for the past 8 years. My partner and I are branching out into larger markets with a higher profile. The reason for this thread is concerning investors. Everybody shy's away from the nightclub industry unless they really know the industry especially in these economic times. I see these multi-million dollar clubs open all around me and wonder, who are these people willing to invest? Were are they found? I have been working on a nightclub in the Las Vegas market, in a major hotel and even getting somebody interested is very difficult, even though the concept has several successful locations. Any response with this thread would be appreciated.
we see it too. recently quite a few bars & quite a few nightclubs have closed. most reopen with new owners. the new owners are 'big' operators.

[milhim]

hi,

for investor in night clubs own your night club in dubai.
in palm jumierah duba.
the best place to leave.
the best blace to invist your mony

afare3@hotmail.com
00971503983422