STATISTICS

Given the current investment climate nationwide, and particularly in the Texas Market, Stroud Companies seized the opportunity to diversify our investment portfolio starting in 2010-2011. Seeing the interest-rate environment, the cyclical Multifamily and Senior Housing markets, and the variable changes in energy pricing, we reevaluate our investment timeline and portfolio mix three to four times per year. With this approach, our portfolio company mix may change from very narrow to extremely diverse. We believe the current business environment will generate investment opportunities in consumable brands, middle-market companies, and real estate. Looking forward, we expect to leverage our expertise in ground floor investments to take advantage of economic cycles and specific industry opportunities.  As we combine this mentality with our opportunistic acquisition and disposition strategy, we expect strong double-digit annual returns and attractive annual yields.

CURRENT INVESTMENTS

COMMONWEALTH JOE COFFEE

Stroud Companies invested in the Seed Round of funding in Commonwealth Joe Coffee, as they realign from retail-focused boutique coffee roaster to the premier Nitro Cold Brew delivery company focusing in the northeast United States.

LEARN MORE

HIMS

HIMS is an investment in the subscription-based, branded, diagnostic platform for Men’s Health and preventative self-care. It is invested alongside several prominent VC funds and family offices, including Peter Thiel (Wikipedia), Thrive Capital (Kushner Family), and Founders Fund and Forerunner Ventures. 

LEARN MORE

WILDLIFE PARTNERS

Wildlife Partners is an investment in the most innovative animal conservation business in the United States. We directly purchase, breed, care for and sell exotics and super exotic hoofstock at two ranches in Texas to nationwide customers, including many internationally prominent zoos, ranches, and government bodies seeking to preserve these endangered and sometimes extinct wild species.

LEARN MORE

SONOMA HOUSE

Sonoma House is a real estate development in the Senior Housing sector to provide state of the art assisted living, memory care and respite care to senior adults.

LEARN MORE

PREMIER OUTDOOR MEDIA

Premier Outdoor Media is a northeast regional company specializing in outdoor media. The company has a dominant position in both automotive traffic and pedestrian outdoor media that includes billboard advertising with contextual messaging, real-time updates, and tune-in messaging. The result is the consumer interacts with a client’s message through visual, mobile, and social integration. The markets include New Jersey, Delaware, and Maryland. We made a direct investment in the Company to support continued growth.
https://premieroutdoormedia.com.

GOOD CULTURE

Good Culture is a series of investments in the “Better for You” food industry. Good Culture Cottage Cheese has grown sales by 650% since Stroud Companies’ first investment. Good Culture makes certified organic cottage cheese that is both high in nutrients and packed with protein. The company is staged to add to the product line with probiotic snack bars and probiotic shots for gut and immune system strength.

LEARN MORE

JACKPOT RISING

Jackpot Rising’s patented tournament infrastructure seamlessly powers social competition & eSports at scale. Jackpot’s framework dynamically deploys prized leaderboard tournaments and facilitates compliant, real money competition for any size player base across Mobile | Console | PC | Arcade | VR/AR (and more) in all 50 states and abroad.

BLUE MARLIN

Blue Marlin is a conduit we invested in to participate in the Term Asset-Backed Securities Loan Facility. TALF is a government program designed to provide liquidity because of the economic downturn caused by Covid-19. The Fund sourced government funding and invests in CMBS Conduits, Small Business Administration loan pools, and private Student Loan portfolios. The expected investment term is three years with above-market returns.

OXIGEN

Oxigen Beverages is an established Canadian company that created OXIGEN bottled water. Its distinction is a pH balance with electrolytes for better hydration, plus the next level of boosting it
with oxygen. Between 2018-2020, OXIGEN has grown more than 270% (year on year) and is targeting +500% revenue growth in 2021. The management team has a proven track record in marketing and brand development. Management is support by notable investors such as Stephen Curry with the NBA Golden State Warriors and Michelle Wie West the American professional golfer. We made a direct investment in the Company to support expanding its product in the US. https://drinkoxigen.com.

NOTCH MOUNTAIN PROPERTIES

Notch Mountain Properties was formed to purchase and remodel value-add multifamily properties in Colorado and other select markets. The Company also adds value through its management of the assets. Apartments range from 50 to 150 Units, leverage of 65% to 70%, and total capitalization of $5MM to $20MM. We will invest on an asset-by-asset basis.
https://notchmountainproperties.com.

DAHLIA

Dahlia Bistro & Bar offers Southern European-inspired cuisine. It offers the ambiance of your favorite restaurant and patio while maintaining the feel of a neighborhood bar. The dining choices are expertly crafted by Chef Ozzy Samano with precise attention to detail and subtlety of flavor. The bar offers floral-inspired cocktails using natural flavors from fresh herbs, vegetables, and edible flowers. We made a direct investment to develop and own this restaurant. https://dahliaonross.com.

TRACTOR SUPPLY COMPANY

Tractor Supply was a site-specific development of a retail store and outdoor-related areas. The retail site was built in 2018-2019, Tractor Supply occupied the store in 2019, and the project was sold in 2020 to a national Delaware Statutory Trust company for more than a 3x multiple on cash invested.

https://tractorsupply.com. 

THRIVE MARKET

Thrive Market is a unique app providing healthy living products made easy. The Company provides guaranteed savings on the consumer’s favorite organic brands delivered to their door. Consumers build their orders from over 6,000 wholesome products, set a recurring delivery schedule, and have the option to adjust deliveries by adding or removing items, skip a delivery, or pause anytime.  The app also offers shopping by over 70 diets and values. We made a direct investment in the Company to support continued growth. 

https://thrivemarket.com

FTX US

FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products, and leveraged tokens. FTX strives to develop a platform robust enough for professional trading firms and intuitive enough for first-time users. We made a direct investment in FTX to support continued growth. 

https://www.ftx.com

WHOOP

WHOOP is a revolutionary personal fitness program and device.  The fitness strap monitors and transmits your personal data so you can craft a personalized fitness, sleep, and recovery data program.  After only 4 months, WHOOP members reduced their resting heart rate by 4.4 BPM, dedicated an additional 41 minutes to sleep per night, and experienced injuries 60% less often.  We made a direct investment in the Company to support its rollout effort. 

https://whoop.com.

TAOS BAKES

Taos Bakes is changing the snack industry with its business model of People, Products and Profit. The Company’s products are some of the cleanest and healthiest in the snack market. It delivers snacks with exceptional taste along with non-GMO, organic, low calories, and high protein. We made a direct investment in the Company to support continued growth and snack development. https://taosbakes.com.

MICROTRAKS

MicroTraks is a software and hardware design company focused on tracking and data management in the ranching and associated industries. The Company looks to be a disruptor with its developed technologies with multiple applications. The current areas of focus are the livestock electronic ID sector, the smart ranch automated inventory area, and the remote animal management area. We made a convertible note investment to provide funds for patents and roll out of its technologies.

TIFF'S TREATS

Tiff’s Treats was started in Austin, Texas in 1999, and today has 60 stores in four states. The Company has a boutique cookie baking and delivery business. Revenue growth is projected to increase by +17% per year. Current investors include Morgan Stanley and CIC Partners, as well as celebrities Dirk Nowitzki, Kendra Scott, and Andy Roddick. We took advantage of an off-market opportunity to acquire shares from a current shareholder looking to diversify a part of his stock position in the Company.  https://cookiedelivery.com.

REALIZED INVESTMENTS

CHEF'S CUT REAL JERKY

Chef’s Cut Real Jerky is a follow-on investment from 2015, now in their Series A round. The brand has consistently shown remarkable growth and diversification of products as they also increase sales with the original product. Over the 2014-2016 timeframe, Chef’s Cut experienced the highest growth of any jerky company with 434% revenue growth, regardless of product quality. The market reception to jerky has been truly staggering, with multiple media outlets bringing Chef’s Cut on as a feature story. NFL star Von Miller, People Magazine, Access Hollywood, Olivia Munn, and many others feature the brand regularly across multiple media outlets.

SECUR, LLC

SECUR, LLC is a growth capital investment to a proven management team in the hazardous waste disposal and logistics business. Using the management team’s existing relationships with the U.S. Department of Energy, Army Corps of Engineers, Fortune 50 public companies, and public entities that create hazardous waste, SECUR will operate across all waste creators with a focus on the most complex and higher-margin business lines. This investment was sold back to management in 2021.

PERMIAN CONTROLS

Permian Controls is an oil and gas field automation company. It was purchased during the 2016 oil price crash and the technology was enhanced. This investment was sold back to previous management in 2021.

ORCHARD PARK

The Orchard was developed as a ground up, stand-alone Assisted Living and Alzheimer’s community which opened in January of 2015 in the Houston suburb of Katy, TX. After a rapid lease up and stabilization at 100% occupancy, the Community was sold in 2017 to an operating REIT for more than 5x multiple on cash invested. A joint venture investment was also made to develop and own 5 Assisted Living and Alzhemier’s communities in Texas using nonrecourse assumable HUD debt.

BAI BRANDS

Stroud Companies invested in Bai Brands, which resulted in a sale to the Dr. Pepper-Snapple Group with a 2.9x multiple on cash invested.

EAST HAMPTON

East Hampton Sandwich Company opened in Snider Plaza, followed by three other restaurants. It was voted “Best Sandwich Shop” by D Magazine. The investment was sold back to Management in 2015.

SKYBOX LEGACY DATA CENTER

Skybox Legacy Data Center is an early 2016 investment in a powered shell data center in the booming Legacy Market of Plano, TX.

PRUDENTIAL REAL ESTATE INVESTORS

Prudential Real Estate Investors is a joint venture investment to develop and own three senior living facilities for $67 million and a second joint venture investment to acquire four senior living facilities for $77 million.

PHOENIX CAPITAL PARTNERS

Phoenix Capital Partners is an ongoing investment in over fifteen individual joint ventures and seven funds to develop and acquire apartments and commercial properties in a multi-state area for $450 million.

TROPHY CLUB

Trophy Club is a joint venture investment to acquire 1,250 acres of residential and retail land in Trophy Club, Texas for $11 million.

GE HEALTHCARE FINANCIAL SERVICES

GE Healthcare Financial Services is an investment in two joint ventures to acquire eight senior living facilities in a multi-state area for $85 million.

INDEPENDENT LIVING MORTGAGE

Independent Living Mortgage is an investment in debt of eight senior living facilities for $98 million. The investment was converted to fee ownership and partially sold in a sale/leaseback in 2005/2006.

INDIAN CREEK

Indian Creek is a joint venture investment with Woodbine Development Corporation to acquire 1,285 acres of residential and retail land in Carrollton, Texas for $12 million. The investment was sold after significant improvements in 1993.

BEI MANAGEMENT

BEI Management is an investment in an existing commerical property manager of 5,000,000 square feet of office/retail properties in a multi-state area. The investment was rolled up and sold in 1994.

TRIAD SENIOR LIVING

Triad Senior Living is a joint venture investment to develop and own nineteen senior living facilities for $196 million. The investment was sold in a partnership buyout in 2003/2004.

MCCOMBS

McCombs is an investment in an existing property manager and syndicator of thirty properties representing $250 million in a multi-state area. The investment was rolled up and sold in 1994.

NHP RETIREMENT HOUSING PARTNERS

NHP Retirement Housing Partners is an investment in equity and debt of an existing company owning five senior living facilities for $85 million in a multi-state area. The investment was sold in a 1997 IPO.

BLACKSTONE REAL ESTATE ADVISORS

Blackstone Real Estate Advisors is a joint venture investment to acquire 1,200 senior living units for $74 million. The investment was sold in a sale/leaseback in 2005.

CAPITAL REALTY GROUP

Capital Realty Group is an investment in a startup real estate service company that managed and leased 33,000 apartments and 24,000,000 square feet of commercial properties in thirty-six states. The investment platform was sold in 1994.

RETIREMENT LIVING TAX-EXEMPT MORTGAGE FUND

Retirement Living Tax-Exempt Mortgage Fund is an investment in debt of six senior living/apartment facilities for $32 million. The investment was converted to fee ownership and sold in a 1997 IPO.

CAPITAL SENIOR LIVING

Capital Senior Living is an investment in a startup company now listed on the NYSE as one of the country’s largest operators of senior living facilities. The initial investment was monetized in a $140 million IPO in 1997. The ongoing stock ownership was monetized in an orderly liquidation starting in 2010.

INDEPENDENT AMERICAN REAL ESTATE

Independent American Real Estate is an investment in an exisiting property manager and syndicator of 4,000 apartment units for $280 million in a multi-state area. The investment was rolled up and sold in 1994.

EQUITY MANAGEMENT CORPORATION

Equity Management Corporation is an investment in an existing property manager and syndicator of 3,000 apartments for $180 million in a multi-state area. The investment was rolled up and sold in 1994.

CASE STUDIES

ORCHARD PARK

The Orchard Park transaction was a ground-up development of four Assisted Living and Alzheimer assets in Texas. HUD debt was acquired, which provided exceptionally low debt service. The assets were built on an accelerated timeline, and the full value was realized less than twelve months after the final opening with a sale to a well-known partner with a total equity return of a 4x multiple and 40% IRR to all partners.

PERMIAN CONTROLS

Stroud Companies, using an owned subsidiary, purchased a controlling interest in Permian Controls, an above ground oil and gas services automation company. The transaction was first put under contract while oil was at the lowest level since 1998. The company was given a significant work-over in operations, debt as well as sales and marketing. Within twelve months of closing, Permian had purchased its headquarters complex and secured low cost and long-term debt on the operations. These strategic moves, combined with the oil price rebounding almost 100%, provided an opportunity to sell this investment back to management.

CAPITAL SENIOR LIVING

(NYSE: CSU)

Capital Senior Living was a company start-up to initial public offering transaction. Three portfolios of independent, assisted, and memory care properties were acquired over an eighteen month period. The properties were then integrated into a single operating company. The company was then expanded through asset purchases and organic growth from a regional company to a national company. The exit strategy was a NYSE initial public offering with a total equity return of 10x multiple and 45% IRR to the founders.