The Alternatives Foundation Market Research Report

Background

Overview

The Alternatives Foundation, formerly known as the Texas Alternatives Foundation, is a non-profit organization dedicated to transforming illiquid assets into philanthropic capital to support transformative education, arts, scholarship, and research across the United States. By facilitating the donation of private equity interests and other closely held business interests, the foundation enables donors to achieve greater impact while fulfilling their philanthropic goals.

Mission and Vision

The foundation's mission is to act as a catalyst for positive change by uniting leaders who embody the Texas spirit to convert alternative assets into philanthropic capital. This capital is then directed toward transformative education, arts, scholarship, and research initiatives nationwide. The vision is to build a robust network of entrepreneurs, business leaders, investors, and innovators committed to creating meaningful, generational impact.

Primary Area of Focus

The Alternatives Foundation specializes in assisting donors with the donation of illiquid assets, such as stakes in limited partnerships, general partnerships, and privately held businesses. By managing these donations, the foundation generates funds that support higher education institutions and research initiatives, thereby strengthening the educational landscape across the country.

Industry Significance

In 2021, Texas's economy surpassed $2 trillion, ranking it as the 8th largest economy globally. The state is home to over 50 Fortune 500 companies and more than 400 of the fastest-growing companies in America. The Alternatives Foundation plays a pivotal role in channeling the wealth generated by these enterprises into philanthropic endeavors, thereby contributing to the state's economic and educational development.

Key Strategic Focus

Core Objectives

Asset Conversion: Facilitate the donation of illiquid assets to generate philanthropic capital.

Educational Support: Direct funds toward transformative education, arts, scholarship, and research initiatives.

Network Building: Assemble a network of leaders committed to creating meaningful, generational impact.

Specific Areas of Specialization

Illiquid Asset Management: Expertise in handling donations of private equity interests and closely held business interests.

Philanthropic Strategy: Guidance on maximizing the value and impact of philanthropic gifts.

Key Technologies Utilized

Valuation Tools: Advanced methodologies for assessing the value of illiquid assets.

Asset Management Platforms: Systems for managing and liquidating donated assets efficiently.

Primary Markets Targeted

Higher Education Institutions: Universities and colleges seeking alternative funding sources.

Research Organizations: Entities requiring financial support for scholarly activities.

Arts Organizations: Cultural institutions in need of funding for programs and initiatives.

Financials and Funding

Funding History

As a non-profit organization, The Alternatives Foundation relies on donations and grants to fund its operations. In 2023, the foundation reported total revenues of $433,381 and expenses of $225,475. The total assets were valued at $7,391, with a staff of one employee.

Recent Funding Rounds

Specific details regarding recent funding rounds are not publicly disclosed. The foundation's financial strategy focuses on building a billion-dollar fund of closely held shares in Texas's most valuable ventures, partnerships, and other illiquid assets. As assets exit, the generated cash supports academic programs, student success initiatives, and capital projects across Texas universities.

Notable Investors

The foundation collaborates with a network of Texas-based and Texas-spirited investors, founders, owners, and operators committed to strengthening higher education in the state. Specific investor names are not publicly disclosed.

Utilization of Capital

The capital raised is utilized to:

Support Higher Education: Fund academic programs and student success initiatives.

Enhance Research: Provide financial backing for scholarly activities.

Promote the Arts: Support cultural institutions and programs.

Pipeline Development

Key Pipeline Candidates

The foundation focuses on managing donations of illiquid assets, including:

Limited Partnerships: Interests in business ventures structured as limited partnerships.

General Partnerships: Equity stakes in general partnerships.

Privately Held Businesses: Ownership interests in privately owned companies.

Stages of Development

The foundation is in the process of building a billion-dollar fund by acquiring closely held shares in Texas's most valuable ventures and partnerships. As these assets exit, the generated funds are directed toward supporting higher education institutions and research initiatives.

Target Conditions

The foundation targets assets that are illiquid and challenging to donate directly, such as private equity interests and closely held business interests. By facilitating the donation of these assets, the foundation unlocks new avenues for philanthropic giving.

Anticipated Milestones

Fund Establishment: Achieve the goal of building a billion-dollar fund of closely held shares.

Asset Liquidation: Successfully liquidate donated assets to generate funds for philanthropic purposes.

Impact Measurement: Assess the impact of donations on higher education and research initiatives.

Technological Platform and Innovation

Proprietary Technologies

The foundation employs advanced valuation tools and asset management platforms to assess and manage donated illiquid assets effectively. These technologies ensure that the value of donations is maximized, and the liquidation process is efficient.

Significant Scientific Methods

Valuation Methodologies: Utilizing comprehensive approaches to determine the fair market value of illiquid assets.

Asset Liquidation Strategies: Developing and implementing plans to sell or transfer donated assets in a manner that aligns with the donor's philanthropic goals.

Leadership Team

Key Executives

Jarett Rodriguez: Founding CEO

Over 25 years of experience in building and leading privately funded companies and public organizations.

Developed a self-sustaining entrepreneurship institute at LSU, built collaborations with the NFL and MLB, and worked directly with the Chancellor to develop new methods of revenue generation for the university.

Rudy Garza: Founder and Managing General Partner, G-51 Capital Management

Served as an investor and board member for over 20 companies, selling several to publicly traded firms including SAP, ADP, Prudential, and Cisco Systems.

Active leader in the venture community, member of the NVCA and the Texas Venture Capital Association, and served as Chairman of the Board of the University of Texas Alumni Association in 2011.

Brent Iverson, Ph.D.: Distinguished Teaching Professor, Department of Chemistry, College of Natural Sciences, University of Texas at Austin

Educated at Stanford University and CalTech, focused on supporting student success inside and outside the classroom.

Explores new approaches to supporting student success and has been involved in various educational initiatives.

Scott Holstead: Managing Director, J.P. Morgan Securities’ Global Wealth Management

Recognized as a top financial advisor by the Financial Times and Barron's, with experience in the Office of Tax Policy at the U.S. Department of the Treasury and the Office of National Service at The George H. W. Bush White House.