Robinson launching fund
Web Posted: 06/08/2007 08:44 PM CDT
http://www.mysanantonio.com/business...d.2de6541.html
Sanford Nowlin
Express-News Business Writer
Former San Antonio Spurs All-Star David Robinson, long a philanthropic shining light for both the city and the NBA, now says he's launching a $250 million fund to invest in socially responsible businesses.
The fund will buy stakes in companies that operate in a "socially conscious" manner and support inner-city development, according to Robinson. He expects his philanthropic reputation and status as a former NBA superstar to help bring it visibility.
"It kind of gives the fund instant recognition," Robinson said Friday at the dedication ceremony for a learning lab at an East Side community center.
"People know what I'm about, and when they see my name on the fund, they'll be able to figure out pretty quickly what it represents. I've spent my entire career trying to be the person I am."
New York investment banker Daniel Bassichis, who Friday left a position at securities giant Goldman Sachs Group Inc., will help Robinson run the fund. The venture will have dual headquarters in New York and the Alamo City.
Bassichis, who was in town Thursday for the NBA finals, said the pair expects to continue raising money in the next three to six months. Several "major New York financial institutions and hedge funds" are expected to invest, he added.
Spurs owner Peter Holt said he'd be interested in becoming an investor.
"We're still not done fundraising yet," Robinson said. "We're finishing up a little bit of paperwork and forming some partnerships."
Robinson wouldn't discuss the fund's specific investment plans, but said it would examine a "broad base" of financial data and social-impact data before making investments. Bassichis said the fund might choose to invest, for example, in a hotel company that gives scholarships to inner-city candidates.
The NBA named Robinson one of the 50 greatest players in league history.
He won championships with the Spurs in 1999 and 2003 and in 1995 was named the league's most valuable player.
Since launching his NBA career in San Antonio in 1989, Robinson also has drawn numerous accolades for his community involvement. Among his highest-profile gifts was his $9 million grant in 2001 to found the Carver Academy, a private East Side school that awards scholarships to much of its student body.
One of the NBA's highest-salaried players during his career, Robinson and his wife started the David Robinson Foundation in 1992, contributing to causes ranging from hurricane relief to providing food and diapers for needy infants. In 2004, the foundation received the $250,0000 William E. Simon Prize in Philanthropic Leadership for its work.
The NBA honored Robinson's activism when it changed the name of the league's community service award to the David Robinson Community Assist Award.
At the end of 2005, about $2.29 trillion in assets was managed by firms and funds that focus on socially responsible investing, according to the Washington-based Social Investment Forum. That's up from $639 billion in 1995 and represents 1 of every 10 dollars currently under professional management.
The number of dollars invested in socially responsible funds has grown as investors have looked for ways to direct their investments toward companies that operate in environmentally friendly ways, give back to the community and don't do business in countries with bad human-rights records, SIF media director Todd Larsen said.
Despite the growing interest in socially responsible investment, Larsen said he is aware of no other significant investment funds headed by a highly visible star or sports figure.
"Initially, I think the advantage will be that it will raise awareness for the fund," he said.
"After that, of course, people will gauge the fund on the merits of how it invests."
Robinson said he's known investment banker Bassichis since his college days at the U.S. Naval Academy. The banker serves on the board of the Carver Academy and has helped the school with its financial and strategic planning.
"He's done a great job over the last few years helping us raise money," Robinson added.
Robinson, who has a mathematics degree from the Naval Academy, said he's had a long-standing interest in financial matters, but only recently has had the time to launch an investment venture.
"I was busy trying to be Dad, trying to spend time at home and trying to get the school open," Robinson said.
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