Latest / Earn Your Leisure / Road to a Billion: The Inner Workings of Kevin Durant's Family Office

Transcript

Road to a Billion: The Inner Workings of Kevin Durant's Family Office · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will.
• 0:57
  Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: So let's talk about the family office. That's interesting because
• 1:06
  Speaker 3: even before a lot of athletes previously this whole thirty
• 1:10
  Speaker 3: for thirty about athletes going broke right, and that was
• 1:13
  Speaker 3: kind of stereotype for a long period of time that
• 1:15
  Speaker 3: athletes get money and they still go broke. Unfortunately, there's
• 1:19
  Speaker 3: still some level of truth to that, but we're seeing
• 1:21
  Speaker 3: that starting to change, athletes getting into investing, taking their
• 1:25
  Speaker 3: business a lot more serious. So, can you explain what
• 1:29
  Speaker 3: a family office is for anybody that doesn't know? And
• 1:32
  Speaker 3: what was was that your idea that you pitched a
• 1:34
  Speaker 3: KD or was that his idea that he pitched to
• 1:36
  Speaker 3: you that he wanted to set up and start to
• 1:39
  Speaker 3: really you know, invest in a variety of different things
• 1:41
  Speaker 3: and have a more structured organization when it comes to
• 1:43
  Speaker 3: his finances.
• 1:44
  Speaker 4: Yeah, well, I mean, I guess the way we look
• 1:48
  Speaker 4: at Kevin's family office is that you know, Kevin generates
• 1:52
  Speaker 4: money from a multiple multiple places, multitude of places on court, Nike,
• 1:57
  Speaker 4: investments in public markets, investments in private equity, investments, and
• 2:01
  Speaker 4: venture Kevin is a very philanthropic young man with a
• 2:05
  Speaker 4: long life in front of him, and he wants to
• 2:07
  Speaker 4: do a lot for his hometown in PG County. And
• 2:11
  Speaker 4: then there's also just like the business of operating an
• 2:13
  Speaker 4: athletes life at the highest level, which is trainers and
• 2:16
  Speaker 4: chefs and the amount of movement they do. He doesn't
• 2:18
  Speaker 4: have a family currently, so you know during the summer
• 2:21
  Speaker 4: he's moving and working out in different places and traveling.
• 2:24
  Speaker 4: And what we were able to do is build a
• 2:27
  Speaker 4: company around that. That's whole sole purpose was building generational
• 2:31
  Speaker 4: wealth for Kevin, building philanthropic legacy in PG County, managing
• 2:36
  Speaker 4: the people in his life that handle public stocks, a
• 2:38
  Speaker 4: handle private equity. We do a lot of the venture
• 2:41
  Speaker 4: and sports investing, but we've put incredible experts around us,
• 2:44
  Speaker 4: but this family office sits at the center of it.
• 2:48
  Speaker 4: And I don't think it was ever like necessarily one
• 2:52
  Speaker 4: of our ideas of the other. But when we got
• 2:54
  Speaker 4: to the Bay, well, first of all, in talking about
• 2:57
  Speaker 4: decision making and where he was going to play. For Kevin,
• 3:01
  Speaker 4: it was always going to be about basketball. But for
• 3:04
  Speaker 4: me as his agent, I needed to look at what
• 3:08
  Speaker 4: came with that, because if he's gonna work as hard
• 3:10
  Speaker 4: as he's gonna work every single day in the gym,
• 3:13
  Speaker 4: every day in practice, damned if I didn't work as
• 3:17
  Speaker 4: hard and think that way and show up to everything
• 3:20
  Speaker 4: and be proactive. So we get to the Bay It's
• 3:24
  Speaker 4: no joke. It's the first, second, third night we're there
• 3:26
  Speaker 4: and Steve Stout says, we're gonna throw Kevin a birthday
• 3:29
  Speaker 4: party at Ben Harwitz's house. And Steve has always been
• 3:33
  Speaker 4: somebody who's like giving me the hey go, you should
• 3:36
  Speaker 4: go this way or look that way. You know what
• 3:38
  Speaker 4: I'm saying. Like his style and mentoring. He's an incredible
• 3:41
  Speaker 4: friend of mine twenty plus years. But like mentoring comes
• 3:44
  Speaker 4: in different shapes and sizes. It's not like, Yo, come
• 3:46
  Speaker 4: on man, it's our Monday morning breakfast. Let me give
• 3:49
  Speaker 4: you the game. It's just like little nods or little
• 3:52
  Speaker 4: things to consider. And he was like, Yo, we're gonna
• 3:54
  Speaker 4: throw this dinner for Kevin. Ain't really tell me much more,
• 3:58
  Speaker 4: but the idea was that he was bringing people that
• 4:00
  Speaker 4: he was meeting, and he had been out there for
• 4:02
  Speaker 4: a few years, and all of a sudden, I was.
• 4:05
  Speaker 5: Like googling names in real time.
• 4:07
  Speaker 4: Oh shit, that's Ron Conway. They call him the Godfather
• 4:11
  Speaker 4: of Angel Investing. Well shit, well then I got to
• 4:15
  Speaker 4: know the godfather Angel Investing. And it was that night
• 4:17
  Speaker 4: where I left there. The first people we met were
• 4:20
  Speaker 4: those type of people, and the next day I followed
• 4:23
  Speaker 4: up on every relationship, and then every time I sat
• 4:25
  Speaker 4: down for dinner and I said, you know, someone said
• 4:29
  Speaker 4: to me, where do you guys want to focus? You
• 4:30
  Speaker 4: think the early stage series A, series B. I said,
• 4:33
  Speaker 4: do me a favorite, tell me what all that means.
• 4:35
  Speaker 5: Quick.
• 4:35
  Speaker 4: As soon as he told me what all that meant,
• 4:37
  Speaker 4: I never forgot it again. And I kept learning and
• 4:39
  Speaker 4: compounding that information, and all of a sudden, we were investing.
• 4:43
  Speaker 5: You know what I'm saying.
• 4:43
  Speaker 4: I didn't have institutional knowledge of it, but I had
• 4:46
  Speaker 4: a great instinct. I could read people. Kevin and I
• 4:48
  Speaker 4: would share ideas and share thoughts. We'd sit with founders
• 4:52
  Speaker 4: and companies that we understood. If it was something that
• 4:54
  Speaker 4: was over our head or something that we couldn't relate to,
• 4:56
  Speaker 4: it didn't matter if we were going to miss it.
• 4:58
  Speaker 5: We just started building.
• 5:00
  Speaker 4: And then that all of a sudden, it was like, shit,
• 5:02
  Speaker 4: this is at the core of our business right now,
• 5:04
  Speaker 4: is that we're getting great deal flow, we're respectful of
• 5:08
  Speaker 4: the process, and we're good investors once we invest. So
• 5:10
  Speaker 4: that was kind of how that side of our business started.
• 5:12
  Speaker 4: And when boardrooms started to take off, and I saw
• 5:15
  Speaker 4: all the possibilities around boardroom, Like any media business, you
• 5:18
  Speaker 4: start seeing it works and it's hopefully limitless do conferences, products, subscription, TV, filmed,
• 5:26
  Speaker 4: But you built the brand at the core in order
• 5:28
  Speaker 4: for us to go and do that and take a
• 5:30
  Speaker 4: chance on something.
• 5:31
  Speaker 5: It's not like we're innovating.
• 5:32
  Speaker 4: We just built a brand for ourselves and something that
• 5:34
  Speaker 4: we hope can grow and be something that's truly respected.
• 5:39
  Speaker 4: But I had to make sure Kevin's been earners.
• 5:42
  Speaker 2: What's up?
• 5:43
  Speaker 6: You ever walk into a small business and everything just
• 5:45
  Speaker 6: works like the checkout is fast, the re seats are digital,
• 5:49
  Speaker 6: tipping is a breeze, and you're out the door before
• 5:52
  Speaker 6: the line even builds odds are they're using Square. We
• 5:56
  Speaker 6: love supporting businesses that run on Square because it just
• 5:59
  Speaker 6: feels seamless. Whether it's a local coffee shop, a vendor
• 6:02
  Speaker 6: at a pop up market, or even one of our
• 6:04
  Speaker 6: merch partners. Square makes it easy for them to take payments,
• 6:08
  Speaker 6: manage inventory, and run their business with confidence, all from
• 6:12
  Speaker 6: one simple system. If you're a business owner or even
• 6:16
  Speaker 6: just thinking about launching something soon, Square is hands down
• 6:19
  Speaker 6: one of the best tools out there to help you start,
• 6:22
  Speaker 6: run and grow. It's not just about payments, it's about
• 6:25
  Speaker 6: giving you time back so you can focus on what
• 6:28
  Speaker 6: matters most Ready to see how Square can transform your business.
• 6:32
  Speaker 6: Visit Square dot com backslash go backslash eyl to learn more.
• 6:37
  Speaker 6: That's Square dot com backslash, go backslash eyl. Don't wait,
• 6:42
  Speaker 6: don't hesitate. Let's Square handle the back end so you
• 6:45
  Speaker 6: can keep pushing your vision forward. This episode is brought
• 6:51
  Speaker 6: to you by P and C Bank. A lot of
• 6:53
  Speaker 6: people think podcasts about work are boring, and sure, they
• 6:57
  Speaker 6: definitely can be, but understanding a professional routine shows us
• 7:01
  Speaker 6: how they achieved their success little by little, day after day.
• 7:05
  Speaker 6: It's like banking with P and C Bank. It might
• 7:08
  Speaker 6: seem boring the safe plan and make calculated decisions with
• 7:11
  Speaker 6: your bank, but keeping your money boring is what helps
• 7:14
  Speaker 6: you live a more happily fulfilled life. P and C
• 7:17
  Speaker 6: Bank Brilliantly Boring since eighteen sixty five. Brilliantly Boring since
• 7:22
  Speaker 6: eighteen sixty five is a service mark of the PNC
• 7:25
  Speaker 6: Financial Service Group, Inc. P and C Bank National Association
• 7:29
  Speaker 6: Member FDIC.
• 7:32
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:36
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:40
  Speaker 1: accused of murdering a Texas. Man of Venezuelan charged with
• 7:44
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 7:48
  Speaker 1: some of the heinous migrant criminals caught because of President
• 7:52
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 7:55
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted legal border
• 8:00
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:04
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 8:07
  Speaker 1: were here illegally, your next you will be fine nearly
• 8:11
  Speaker 1: one thousand dollars a day, imprisoned and deported, you will
• 8:15
  Speaker 1: never return. But if you register using our CBP home
• 8:19
  Speaker 1: app and leave now, you could be allowed to return legally.
• 8:23
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws
• 8:27
  Speaker 1: border and families will be protected.
• 8:30
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 8:32
  Speaker 4: Business was tight because that's like how we got here,
• 8:35
  Speaker 4: you know what I'm saying. And I wanted to make
• 8:36
  Speaker 4: sure it was clear that like the respect I have
• 8:38
  Speaker 4: for that side of Kevin's business, the family office, I
• 8:41
  Speaker 4: was never going to take my eye off of.
• 8:43
  Speaker 5: So that's kind of how we.
• 8:44
  Speaker 3: So you manage, you manage the situation, Karda, you overlook
• 8:47
  Speaker 3: the family So who all right, he has a lawyer.
• 8:50
  Speaker 3: He has a financial advisor.
• 8:51
  Speaker 5: Oh yeah, I forgot, I'm on oing your leisure. I'm
• 8:53
  Speaker 5: gonna break down.
• 8:53
  Speaker 4: Then he's got this is going to be a slot
• 8:57
  Speaker 4: on public stock portfolio managers. We have somebody in the
• 9:02
  Speaker 4: camp that works with us on private equity deals, later
• 9:05
  Speaker 4: stage investments, sports investments, and properties.
• 9:08
  Speaker 5: But my eyes around it all. I talked to Kevin
• 9:10
  Speaker 5: about it all.
• 9:11
  Speaker 4: We're all pretty seamless team. There's venture which my office,
• 9:16
  Speaker 4: the thirty five V office, does a lot of that work.
• 9:21
  Speaker 4: And then there's Kevin's philanthropic kind of like two sides
• 9:27
  Speaker 4: to that. His father runs Team Durant, which is his
• 9:29
  Speaker 4: AAU organization. His mother runs the Durant Family Foundation. We
• 9:33
  Speaker 4: have a standalone building in PG County called the Durant
• 9:35
  Speaker 4: Center where there's a college track program on the ground floor,
• 9:38
  Speaker 4: which is a partnership with Emerson Collective and Loreene Jobs.
• 9:41
  Speaker 4: And then there's the Durant Family Foundation offices in there
• 9:45
  Speaker 4: as well. And then Kevin has a lifetime deal with
• 9:47
  Speaker 4: Nike and he's on his seventeenth shoe that will come
• 9:50
  Speaker 4: out next summer, so we're on sixteen right now. So
• 9:55
  Speaker 4: that all operates within that family office, and then all
• 9:58
  Speaker 4: of those people, his lawyer, his business manager that's paying
• 10:02
  Speaker 4: bills and doing a state planning and insurance and paying
• 10:05
  Speaker 4: chefs and security. They work with us as well. And
• 10:08
  Speaker 4: then we have like our private equity guy. That's a lot.
• 10:12
  Speaker 4: That that is a lot. That's a hell of a portfolio.
• 10:15
  Speaker 6: I wonder, as you're building this portfolio out, is there
• 10:18
  Speaker 6: a vision to say, you know what, Because people don't
• 10:22
  Speaker 6: mention KD as the next billion dollar athlete, but based
• 10:25
  Speaker 6: on everything that we're seeing from a business standpoint, the
• 10:28
  Speaker 6: trajectories right there are their strategic goals and how to
• 10:32
  Speaker 6: reach those goals. Is that part of the planning as well?
• 10:35
  Speaker 4: Yeah, well, it sucks that he's not because he should
• 10:39
  Speaker 4: be as much as anybody exactly what I'm saying.
• 10:41
  Speaker 5: Because he's quiet. I want to get to the talking
• 10:45
  Speaker 5: part too, because you're good. Yeah.
• 10:47
  Speaker 4: No, But I think one thing that somebody made a
• 10:53
  Speaker 4: point of saying to me a few years ago that
• 10:55
  Speaker 4: stuck with me is like, at some point you got
• 10:57
  Speaker 4: to start thinking about making sure you like what you
• 11:00
  Speaker 4: own and you want what you own like. It can't
• 11:02
  Speaker 4: just be an investing in things because you think the
• 11:04
  Speaker 4: investment's great. You should really want what it is that
• 11:07
  Speaker 4: you own. So I think for us, like that's been
• 11:10
  Speaker 4: part of the strategy. It's like, all right, you've built
• 11:12
  Speaker 4: this incredible core base where because of your hard work
• 11:16
  Speaker 4: and your gifts and your skills, you were able to
• 11:18
  Speaker 4: make an insane amount of money on the court, and
• 11:21
  Speaker 4: because you were able to have a level of relevance
• 11:24
  Speaker 4: and an incredible encore business to build a Nike business
• 11:27
  Speaker 4: for seventeen years, you now have a lifetime deal. So
• 11:29
  Speaker 4: that's incredible, and you've put great people around you to
• 11:34
  Speaker 4: build your wealth upon wealth.
• 11:36
  Speaker 5: But you're thirty five.
• 11:37
  Speaker 4: Now you're going to retire forty years old, forty one
• 11:39
  Speaker 4: years old, thirty nine, forty three, whatever it is. He's
• 11:43
  Speaker 4: not going to play forever. So how do you maintain
• 11:45
  Speaker 4: that level of income?
• 11:47
  Speaker 5: How are you going to.
• 11:48
  Speaker 4: Make fifty fixed on another job in the world besides
• 11:52
  Speaker 4: the NBA, right, and Nike is a level of cash
• 11:56
  Speaker 4: and royalties, So there's some commitment and anity and knowing
• 12:00
  Speaker 4: you have that, But then you got to think about,
• 12:03
  Speaker 4: like what do I want to do? So he loves
• 12:05
  Speaker 4: the idea that him and I own boardroom fifty to fifty,
• 12:08
  Speaker 4: but building a businesses. It's all a variable, right, Like
• 12:12
  Speaker 4: you don't know if that's going to bring you great
• 12:13
  Speaker 4: wealth or not.
• 12:14
  Speaker 5: But that's part of the portfolio.
• 12:15
  Speaker 4: He's invested in sports teams, which is part of the future,
• 12:19
  Speaker 4: and he was able to get in at MLS at
• 12:21
  Speaker 4: a very low price, and valuations have exploded, and we've
• 12:27
  Speaker 4: put a lot of bets in a lot of different
• 12:28
  Speaker 4: sports properties, and post career, I'm sure Kevin will take
• 12:32
  Speaker 4: a shot at owning a major sports team, and so
• 12:35
  Speaker 4: all of that will add to the wealth. But then
• 12:36
  Speaker 4: it's starting to identify things that we want to keep
• 12:38
  Speaker 4: building out and things that Kevin wants to own. Is
• 12:41
  Speaker 4: it real State, is it consumer brand? Is it in
• 12:44
  Speaker 4: the QSR space? You know, you look at what like
• 12:46
  Speaker 4: Junior Bridgeman built exceptional. You guys had him on the conference.
• 12:49
  Speaker 4: You know, I think a lot of these businesses that
• 12:52
  Speaker 4: are more kind of familiar and traditional are all of
• 12:55
  Speaker 4: a sudden really attractive with the idea that like the
• 12:59
  Speaker 4: economy's bucked up, and Crypto and Away and NFTs are dead,
• 13:03
  Speaker 4: all these headlines you read and just the reality of
• 13:06
  Speaker 4: the world. So now all of a sudden, things like
• 13:08
  Speaker 4: Burger King start to seem way safer.
• 13:11
  Speaker 5: You know, somebody's got to eat.
• 13:13
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 13:17
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 13:21
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 13:25
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 13:29
  Speaker 1: some of the heinous migrant criminals caught because of President
• 13:33
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 13:36
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 13:41
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 13:45
  Speaker 1: one hundred thousand illegal aliens.
• 13:46
  Speaker 2: Have been arrested.
• 13:48
  Speaker 1: If you are here illegally, your next you will be
• 13:51
  Speaker 1: fine nearly one thousand dollars a day, imprisoned and deported,
• 13:56
  Speaker 1: you will never return. But if you register using our
• 13:59
  Speaker 1: CBP home map and leave now, you could be allowed
• 14:02
  Speaker 1: to return legally. Do what's right, leave now. Under President Trump,
• 14:07
  Speaker 1: America's laws, border and families.
• 14:10
  Speaker 2: Will be protected. Sponsored by the United States Department of
• 14:12
  Speaker 2: Homeland Security,