Adam Dudley: From Physical Ed to Private Equity

As a managing partner at Grace Capital Partners LLC, Adam Dudley is an anomaly in the investment industry as his path to success has been interesting, fruitful and even a little bit adventurous. For someone who emerged from the University of Florida with the qualifications of a gym teacher, Dudley has successfully worked to position himself as an innovative entrepreneur, breaking down barriers to realize his own potential for wealth built out of smart investments and prosperous relationships.

VH: How did you wind up on the path of entrepreneur?

AD: I’ve had what some would consider a haphazard path to success. I come from a middle class family in Florida and entrepreneurship was something that was never on the radar. My first job out of college was with the local YMCA. I quickly discovered that I wasn’t only making a pitiful salary, there was no career path. I left that position to work as an independent contractor as a fitness coach. This business grew by word of mouth and I eventually ended up taking over a country club.

VH: Did anything come out of that experience that led to your current success?

AD: It essentially set the course for where I am today. In consulting with people in the fitness world, I became acquainted with many affluent individuals, those who had already made their millions in the business world. As a result, I was able to connect with people who eventually became my mentors. In fact, my first mentor inspired me to leave the industry and travel with him as he made deals internationally. In that experience, I learned that there were ways to make a lot of money spending very little time. It was invigorating and set me on a path of self-education to learn everything I could on making deals come together.

VH: You mentioned more than one mentor – how many people counseled you on your path?

AD: In all honesty, I probably had more mentors than even I realize. But, some very generous individuals literally took me under their wing to show me so much about what they knew and how to make my own success. The most interesting thing as I look back now is that each of the three significant mentors in my life had three very different focuses. One was a land developer, one a restaurant consultant and still another was a software developer. But, each had very significant success in their own industry and I was able to glean an excellent variety of knowledge and experience. Now, I have deals in the works with each of these mentors as we now operate much on the same level.

VH: When did investing enter into the mix?

AD: My most recent position was with Group Four Restaurants where I worked with private investors to raise capital for new projects. When the lull in the economy set in about mid-2008, the money for our projects completely dried up and I didn’t see any way it was going to resurface in the near future. So, I left the company and decided that I needed to make my own path. One of the most important things I learned early on as an entrepreneur is that the depth and breadth of relationships are essential. When those relationships are in place, if you’re hit hard, you’ll still be OK because you can plug into your network. After I left Group Four, I dusted myself off and plugged into my network.

VH: And so Grace Capital LLC was born?

AD: Exactly. I was set up with a partner who’d been angel investing on his own. I spent some time educating him on the importance of spreading out his risk and the diversification available in fund-style investing. As a result of these meetings and conversations, we decided to develop a private equity fund. Grace Capital focuses on providing US$100,000 to US$5 million to seed- and early-stage companies in health care, clean technology, and high-tech business and computer services. We also arrange funding through private equity for diversified real estate investments over $5 million.

VH: Your profile mentions that you’re seeking a third partner in this venture.

AD: We’re trying to slow down and take a step back to determine the best mix for our organization. We’re fully aware that we need to bring on sophisticated partners, those who have at least 10-15 years of private equity investing experience to add quality to the company. Until we find that person, or persons, we’re operating more as a hybrid, focusing on several deals with the intention of raising the fund in the long term.

VH: What is the ideal investment for you?

AD: Right now, there are huge opportunities in real estate. Several deals that were in the works before the economic slump are now sitting ideal due to lack of funds. For those who can come in and supply the proper funding and wait until the recovery, there’ll be very nice profits. Mexico is one market that’s very promising for real estate, especially hotels. It takes approximately two years to properly develop a hotel. This is also enough time for the market to recover and the investor will be able to sit back and enjoy the profits in bulk.

VH: What other areas are you watching right now?

AD: As an entrepreneur at heart, I still keep an eye on startups. At Grace Capital, we’re watching cleantech very closely as we expect this trend to continue to grow. We also anticipate significant opportunities in bio-pharmaceuticals as the Obama administration is taking an aggressive approach with healthcare.

VH: What geographic markets should be on our radar?

AD: My first answer to that is — the best country to watch is the one where you know about the best deals. It all depends on where your contacts are and how quickly you have the information you need to act. In saying that, I’ll highlight that Africa is showing a lot of promise. It currently has the fastest growing cell phone market in the world and other emerging technologies are making it much more viable in terms of growth potential than ever before. This is one market that should be on everyone’s radar.

VH: What do you anticipate in the coming year?

AD: One investment opportunity that I’m really excited about has to do with treasure hunting. Believe it or not, there are hundreds of boats that have sunk off of the coast of Florida. Through “Adventure Investing” we’re gathering investors who are interested in Treasure Hunts and launching expeditions to try and find these sunken treasures. We’ve already hired Moe Molinar, one of the most famous and successful treasure hunters in the world, and his crew to lead these adventures out to sea with a boat we’ve purchased just for this reason. For about 3-4 months in the summer – which is Treasure Hunt season – Capitan Molinar and his crew will search for and hopefully find some of the world’s most valuable artifacts on the ocean floor. This is a dream come true for many of us and we’re really excited about it.

VH: Wow! That’s definitely something we’d want to hear more about. Is there anything else you’d like to add?

AD: Simply that I get great enjoyment out of mentoring new entrepreneurs and I look forward to finding and developing new relationships in this area. To those who’ve already embarked on their investing adventures, I’d offer the following advice: always operate from the most stable economic position possible. Don’t put too much pressure on yourself. And always remember – relationships are king!

* Interviews are edited for clarity and readability.

Link:

• Connect with Adam on LinkedIn