In 2019, living in Las Vegas, I began reflecting upon when I was happiest in life. I remembered that I never felt better than back in 2008 when I owned a ranch in Sisters, Oregon and loved doing anything outside: checking fence posts, planting trees, raising cattle, designing irrigation pump stations. It didn't matter what the work was on the ranch as long as it was outside. It felt peaceful and brought me contentment. To take a break, I would look past the green pastures up to the majestic 3 Sisters Mountains in the Cascades. The only things I didn't like were the water scarcity issues and the high State of Oregon taxes.
By that point, I had spent over 25 years in alternative investments—as principal of three hedge funds, led or directly investing in more than 200 structured financings (pipes, reverse mergers, private placements, venture investments, etc.). Advising companies from startup through public offerings. I had co-founded a financial analytics company named Sectorbase (renamed Revere Data) that FactSet acquired in 2013 and authored/co-authored seven patents. I'd also purchased, turned around and operated distressed self-storage facilities; and developed entitlements and led infrastructure on commercial and industrial projects. But sitting in Las Vegas, none of that felt as satisfying as the memory of that ranch.
So, I started looking for property in resort towns in the Western States. For the next 3 years, I searched for a place to put down roots permanently. For me it needed to be a resort town, to possess absolutely beautiful and incredible nature, a small population, a safe place relative to most U.S. cities, many activities winter and summer, a culture of humility and kindness and appreciation for life. Somewhere that would be less affected by global warming than other places and possess plentiful water. It also needed a minimum level of services: Amazon delivers, Fed Ex and UPS deliver, a pharmacy, etc. I looked all over the Western United States. Because for me the West is the most beautiful and feels like home. I drove, flew or rode the train to places including Lake Tahoe, Nevada, Friday Harbor in the San Juan Islands in Washington, Sun Valley and Coeur d'Alene, Idaho, Heber and Camas (1 hour outside of Park City) Utah, Steamboat Springs, Colorado, Jackson Hole, Wyoming and Northwest Montana.
In 2022 I arrived in Kalispell, Montana. Looking out the window, before I landed, I knew this was the place for me. It literally checked off every box. Later when my wife came to Kalispell, the same reaction. During this time, I came to the realization that I was passionate about land, particularly forest land. Everything about it: The adventure; the change of its look during each season; the sweet smell of the air walking through the forest; the views across it, below it, above it; wildlife. I quickly ascertained that some of the largest amounts of forestland are owned by timber families, dating back to 1909 and earlier, before Weyerhaeuser and Plum Creek Timber. I set out to understand the enduring value of forestland and how to create value for investors while improving people's lives so they too could realize their dreams. I needed to learn everything about forestland. And so it began.
In 2023 I found a parcel of forest land (150 acres) in the mountains above Kalispell Montana. It possessed every single criterion I was seeking for our family. Top of the mountain. 200-degree views spanning over 100 miles, including looking North to Canada, Northeast into Glacier National Park, East to Flathead Lake and the Mission and Swan Mountain Ranges, Kalispell, Whitefish, Columbia Falls, then looking South down the lake and across the mountain ranges, almost to Missoula. Bordering on national forest. Most importantly the land was classified as unzoned, the most valuable land that exists in Montana. Therefore, type of use and land development is unlimited (no set backs, no height limits, etc.).
After meeting the seller of this land, a large land owner here in Montana, I knew I had met someone I could learn from. He had started and run for 40 years, one of the largest used earth-moving equipment businesses in the country and began buying large tracts of forest land and drilling water wells. We became friends and he became my mentor. Not sure he signed up for that but that's what happened; fortunately for me. Sometimes he would say to me "you ask too many questions." I would be silent for a little while; and then ask more.
I previously conducted my own infrastructure and several commercial and industrial projects in Sisters, Oregon, Las Vegas, Nevada and Logan, Utah; but forest land at elevation is different. Access issues, specialized property/trail mapping apps required, varied and often challenging topography, the seasonality, property hazards, the variety of technical specialists needed (surveying engineers, hydrologists, geologists, etc.) to research the history of the land, geology, water and mineral rights, hybrid ownership of roads. Then there is the fast changing weather, and its variation every 500 feet of elevation, types of materials and equipment used (geotextile, hydraulic breakers, etc.) Over the last 4 years, I have developed deep expertise in Montana forest land—expertise I now bring to every acquisition we evaluate for the Fund.
I also built a close relationship with perhaps the largest land broker in Montana—a born and bred Montanan with a feverish passion for land. Most of his days are spent in a UTV or riding a snowmobile, traversing a "goat trail" on a mountain, not in the office (a month or so ago he finally got a Sat Phone for his safety). We have traveled over many lands together, always with a chainsaw in hand and a pistol on our person (bear and mountain lion country). These relationships now provide Land Value Alpha Fund with proprietary deal flow that institutional competitors cannot access. Both remain close advisors to the Fund.
Before launching the Fund, we (my wife and I) wanted to validate our land and water rights investment thesis. Following a thorough 19-month escrow, researching 100+ years of ownership history, involving 5 law firms, 10 contract amendments, 30+ site visits, we purchased the land from our friend and my mentor. Then after 6 months of contractor vetting, we set out to conduct our 1st infrastructure and water rights project on our own parcel of land. This property was always intended to be our generational family land—a legacy for our children and theirs—so we were not seeking outside capital. We funded it entirely ourselves: no investors, no lenders, no partners. Just our own capital and the knowledge and expertise we gained. Gratitude to my wife Yuliya. She was/is/always so supportive. Two years later, the land had appreciated approximately 62%, with additional value creation still ahead as we complete the infrastructure; and now, Discovery Land Company, who owns 38 resorts around the world, including the Yellowstone Club, is developing a 1700 acre resort on Flathead Lake, 2,300 feet below us and 7 miles away in Lakeside Montana (you can read our success story and the investment return profile on our website here and see several photos of the project at various stages, in our gallery section here.)
As a result of years of learning and our direct experience and success with our first project in Montana—at elevation with serious topography—we were able to establish a repeatable foundation with a formalized due diligence process and chronology, from survey to acquisition, methods of division to entitlements, water rights, infrastructure (roads, power, water well drilling, rock demolition, septic systems, etc.) through disposition, with strategic exit timing to optimize returns.
The ability to buy forest land at very low relative prices, conduct infrastructure and create water rights on the land and sell the land 8-10 years later, targeting 6X or more equity multiples on your investment, is compelling.
So, we decided to apply what we learned, at scale, with the launch of Land Value Alpha Fund. With our own capital always committed to the Fund. We are investing in an asset class with very low volatility and almost no correlation to most other asset classes. No worries about inflation or currency devaluation. We bring to bear deep knowledge and experience, surrounded by other experts as well. We conduct institutional due diligence, professional project management and water rights expertise; and of course, AI powered extensive financial modeling (after all I come from the hedge fund world). In our relentless quest to create value, we do what others can't, won't, don't.
Our mission is to create durable generational wealth for our investors in one of the most beautiful and resource-rich regions in America.
This is our origin story.
