Can you tell us about Gibraltar Capital Management?
A boutique investment management firm dedicated to serving successful families. Established in 2002, we deploy a team of professionals with unique skills and experiences curated to aid people who have achieved much in life but who still desire to positively impact their family, community and the world. We manage portfolios based on rigorous fundamental analysis and proprietary in-house research. We don’t peddle products or have sales contests; we grow by taking care of real people and connecting with them out of a sincere spirit of service.
We train, challenge and prepare one another so that when we are called upon by our clients, in a moment of great need, we are able to deliver genuine wisdom and value.
Gibraltar Capital Management is unique in the way it manages a real estate portfolio, including several apartment and commercial buildings. How did this evolve?
For several years after the recession of 2008-09, commercial real estate remained attractive and interest rates remained low. Unlike the average American, many of our clients were debt free and under invested in real estate. We realized that we could build a partnership with our clients to invest in large projects and take advantage of attractive non-recourse financing, not requiring them to guaranty the loans. We now manage approx. $170 million in commercial real estate on their behalf. We do not solicit outside investors for the real estate funds – only our wealth management clients are participants. It has been an immense effort to initiate and grow, but the practice of managing these assets has made us better investors and advisors.
Gibraltar’s leadership team mostly consists of hardcore Arkansas Razorbacks. How did you become engaged with the Personal Financial Planning Department at Kansas State?
We will ALWAYS be Razorbacks first. Sorry ‘Cats. However, we are thrilled with the partnership with K-State!
Some background. We have maintained a summer internship program for 5+ years. Frequently, we offered the opportunities to children of our clients. Other years we would have a flood of resumes and pick the 2 or 3 that looked promising. The program was growing, but in an organic and unstructured manner. We had put some feelers out with the PFP programs at other universities, but never gained any traction there.
In May 2019, I attended the FPA NorCal Conference in San Francisco. I attended a session led by Dr. Martin Seay and was intrigued by the Kansas State program and the emphasis on relationships, communication, practical planning and the underlying counseling aspects of our profession. We can hire financial analysts, but in order to truly connect with a client, it requires equal parts smarts and empathy. I felt Dr. Seay was building a program that understood that.
After several conversations with members of the department and a trip to campus, we felt compelled to make some commitments to see if this connection might yield some fruit. Win-Win. Mutual benefit. Etc. Etc. Those phrases get tossed around so often and usually are not anywhere close to being true. We were willing to make some sacrifices to see if it might be real this time. So far, so good.
What does a successful partnership with the Department look like to your firm?
Culture is important to our firm. We care about one another and we want to maintain that feeling even as we continue to grow. As such, hiring the right people is a tricky business.
With that fact as preamble, a successful partnership with the Department is pretty simple. We want to EARN the opportunity to invite the “best” rising senior, each year, to intern with us. And if that internship goes well, to hire them when they graduate. The internship effectively serves as a very extended interview.
What does “best” look like? We’ll that’s part of our secret sauce. If we see it, we’ll let you know.
This past summer you had your first intern from Kansas State. What would you share with other firms interested in developing an internship program?
We got lucky. We took a chance and it’s paid off. We are in the investing business; we invest in companies, governments, real estate, and people. When you invest in people, the returns may not show up on an account statement, but the rewards are far more fulfilling.
My advice would be for them to take a chance and commit. You might find your next great employee. Or your firm might not hire anyone, but your team may be enriched by the fresh perspective from a student. If you’ll commit a few weeks to them, they will be forever grateful for the opportunity and will be an advocate for your firm wherever their career may take them.
What is something you hope that all Personal Financial Planning students would know about Gibraltar?
We get paid two ways — the fees paid by our clients and the “thank you’s” we receive from those we serve. The fees pay for the employees, systems and internships. The thanks keep us motivated to become better. To learn more. To listen better. To share generously. The fees are nice, but the thanks are oxygen.