American Indian Report - May 2008 - (Page 24)

FI n A n CE Tribes Diversify with Private Equity Fund By randi hicks rowe THE COLUSA TRIBE, the Rincon Band of Luiseño Indians and Wells Fargo Bank will be the lead investors in a specialized private-equity fund through which they and other tribes can make joint investments. The fund is a way for the tribes, both of which have gaming operations, to diversify their holdings. Each is committed to investing up to $5 million over five years. They expect to raise $25 million with other tribes, each investing $1 million to $5 million. “Casinos are coming under more significant competition from commercial casinos. Tribes are seeing this and investing in other ventures,” said Ernest P. Goss, an economist at Creighton University. “Private equity firms using casino dollars make sense. Certainly, Wells Fargo would have a tradition around private equity funds.” Gross pointed out that tribes that chose to use non-tribal banks for investing would have to share profits and also need to look carefully at taxation and sovereignty issues that might not come up with tribally owned banks. The Colusa Tribe chose to partner with Wells Fargo and the Rincon Band as a way to mitigate risk, said Bonnie Pullen, CFO of the Colusa tribe. “We already had a relationship with Wells Fargo and this fund is done through Community Development, so that made it a logical choice,” Pullen said. Bob Taylor, president of Wells Fargo Community Development, said the bank had been receiving inquiries from tribal customers about diversification. Steve Stallings, who operates the Native American division, developed the idea. Private-equity funds are new to many tribes, so they are being methodical and cautious in learning about them just as any organization doing this for the first time might be. The bank is now in active discussions with several tribes that also might invest. “We’re very excited [about] how this is beginning to come together,” Taylor said. “We hope to close this out in June.” n “Casinos are coming under more significant competition from commercial casinos. Tribes are seeing this and investing in other ventures.” 24 May 2008 American Indian Report

Table of Contents Feed for the Digital Edition of American Indian Report - May 2008

American Indian Report - May 2008 Contents Courts: Blackfeet Housing Authority Can Be Sued For Unhealthy Homes Congress: Activity on the Hill Ethics & Standards of Conduct: Personal Use of Tribal Property Policy: "Meriless Indian Savages" and the Declaration of Independence Green Technology Grants: New DOJ Program Provides Funding For Rape Crisis Centers Listen & Learn: Multiple Indirect Cost Rates Sweet Success Penobscot Nation Restores Cultural Use of Water Tribes Diversify with Private Equity Fund The Native American YouTube Tribal Government: An Introduction to Strategic Planning

American Indian Report - May 2008

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