2 IntroductionMcCombs Partners serves as the investment management division of McCombs Enterprises, the family office of Red McCombsRed McCombs is the founder of the Red McCombs Automotive Group, a co-founder of Clear Channel Communications, a former owner of the San Antonio Spurs, Denver Nuggets, and the Minnesota Vikings, and the namesake of the McCombs School of Business at the University of Texas at AustinHe is a long-standing member of Forbes magazine’s top 400 richest Americans and has owned nearly 400 businesses during his careerIn addition to the automobile and sports businesses, McCombs is a successful developer of real estate, has built a successful oil and gas energy company, and is an astute private equity / venture capital investor
3 Timeline of Red McCombs’ Career 1927Red McCombs was born in Spur, TX1950Opened first Ford dealership in Corpus Christi, TXMid-1960sPartnered with Bill Forney and entered into the Energy E&P business1972Purchased San Antonio Spurs (bought the team a second time in 1988)1998Forney & McCombs consolidated into McCombs Energy2000Pledged $50MM to the University of Texas for the newly named McCombs School of Business1920s1930s1940s1950s1960s1970s1980s1990s2000s2010s1940sAttended Southwestern University, served in the Army, and attended business and law school at the University of Texas1958Moved to San Antonio and formed Red McCombs Automotive1972Co-founded, with the Lowry Mays family, a radio station that, in time, became Clear Channel Communications1982Purchased Denver Nuggets1997Red McCombs and Bart Koontz joined forces in 1997 to form Koontz McCombs1998Purchased Minnesota Vikings2010Announced financial backing for bringing Formula One to Austin, TX
5 McCombs Automotive / Retail McCombs is recognized as one of the leading automobile dealers in the United StatesHis career began in 1950, and since then he has owned and represented almost every brand of vehicleThe operations have included retail dealerships as well as importation and distribution of Japanese and Korean vehiclesMcCombs Automotive ranked 6th in the U.S. in sales in 1998, exceeding $1.7 billion in revenues, with more than 100 locationsIn addition to serving two terms as Chairman of the Ford Dealer Council, and consistently ranking in the Top 100 Dealers in the United States, McCombs has also been inducted into the National Automobile Dealers Association Hall of FameEach of his auto dealerships has earned national recognition awards for sales and service excellence
6 McCombs EnergyMcCombs Energy is a privately owned oil and gas exploration and production company that is based in Houston, TexasRed McCombs has been active in the oil industry for over 50 years, however, his significant commitment to the exploration and production areas of the industry began in the mid 1960's during his early business relationship with Bill ForneyEventually, McCombs’ long-standing partnership with Mr. Forney evolved into Forney & McCombs, and on January 1, 1998, the separate oil and gas assets of Forney Oil and McCombs were consolidated into McCombs EnergyMcCombs Energy engages in both onshore and offshore oil and gas exploration and production from New Mexico to FloridaThe company actively reviews many exploration ideas and prospects generated by independent geologists and other companies, and also invests directly as a working interest owner with other companies that operate
7 McCombs Real EstateMcCombs is a successful investor and developer of real estateMcCombs has participated in over $1.5 billion of real estate transactions in the past 10 yearsMcCombs’ properties include apartment residences, condominiums, office buildings, resorts, and land developmentMcCombs’ real estate group also includes Koontz McCombs, a multi-faceted commercial real estate development, construction and brokerage firm established in 1997 and based in San Antonio, TXKoontz McCombs currently has active projects in San Antonio, Austin and Houston and has been involved in the development, acquisition or construction of over 5,000,000 square feet of commercial propertyThese properties range from office, industrial/flex space multi-family projects and single tenant retail to build-to-suits for some of the nation’s leading businesses
8 McCombs PartnersMcCombs Partners provides investment capital and advisory services to investors in private technology, consumer and industrial businessesThe core focus of McCombs Partners is assisting emerging growth companies with mergers and acquisitions, raising capital, and providing restructuring servicesOur portfolio includes leaders in everything from a super-premium, organic tequila to the Circuit of the Americas, which will be the first purpose-built Grand Prix facility in the United StatesMcCombs Partners is driven to succeed by following a simple investment and operating strategyInvest in smart ideas, well-positioned opportunities and great peopleLeverage our experience, expertise and relationships to develop partnerships and accelerate growth opportunities for our partner companiesProvide our partner companies with the required resources, both financial and strategic, to ensure successMaximize the opportunities and challenges of each day through the words and actions of Red McCombs: “Expect to Win, Prepare to Win, Execute to Win”
9 Financial Services Portfolio Companies Autovest, LLCPropel Financial Services, LLCOwner: Jim Blasius Location: Southfield, MI Description : Autovest is a specialty investment company acquiring distressed consumer finance and automotive loans. Operating throughout the United States, Autovest specializes in the collection of bankrupt, post-charge off and judgment accounts through an in-house collection platform which has outperformed that of its competitors for nearly 20 years.CEO: Jack Nelson Location: San Antonio, TX Description: Propel Financial Services, LLC is a specialty finance company founded in Propel’s primary focus is property tax refinancing for commercial and residential properties. Through partnerships, originations, and acquisitions, Propel has quickly become the market leader in property tax refinancing. Propel differentiates itself from other property tax finance companies by its competitive rates, flexible refinancing options, and efficient processes.Rêv WorldwideSmartyPigFounders: Roy and Bertrand Sosa Location: Austin, TX Description : The Company has built a global network designed specifically to innovate cutting-edge, end-to-end payment solutions that bring financial empowerment to underserved markets.CEO: Bob Wenschenk Location: Des Moines, IA Description : SmartyPig is an online banking platform that allows customers to open goal-based savings accounts. The Company has enjoyed tremendous growth having drawn in more than $350 million in U.S. deposits to date without any advertising expenditures. Beyond the United States, the company launched its international banking platform in 2009.
10 Automotive Technology Portfolio Companies ClickMotiveHomeNet AutomotiveCEO: Stuart Lloyd Location: Plano, TX Description : ClickMotive is the only company to deliver the powerful combination of website design, video, dynamic search, and Mobile websites – in a single product, on a single platform, for one low cost, using 100% in-house technology. ClickMotive services some of the most recognized names in the auto industry, including Toyota, Ford, American Honda, AutoNation, and thousands of individual dealers and groups. Led by the former owners of Third Coast Media and the former Vice President of RWS, ClickMotive combines powerful tech savvy with years of experience at all levels of the automotive industry.Ownership: Acquired by Autotrader.com in 2010 Location: West Chester, PA Description: HomeNet Automotive helps the automobile industry save time and sell more vehicles. It is the leading provider of inventory merchandising, management and marketing services, led by its flagship product, Inventory Online (IOL) Internet Marketing Suite. IOL is a web- based vehicle marketing solution that helps tens of thousands of automotive dealers to engage buyers online and bring them into the showroom ready to buy by streamlining the process of converting raw vehicle data into consumer-friendly and emotional online ads. With 135 employees, HomeNet has garnered a spot on the “Inc. 1000” for the second year in a row, its third recognition by the prestigious magazine in as many years.
11 Security Portfolio Company Xe Services LLCXe is the pre-eminent global provider of training and technical services focused on counterterrorism, forced protection, law enforcement and security operationsAcross its four vertically integrated business divisions – domestic training, international training, security services and logistics – Xe serves the U.S. Department of State, the U.S. Department of Defense, U.S. Navy, numerous law enforcement and intelligence organizations/agencies, and select commercial customersXe’s proven ability to provide turnkey, end-to-end training and technical services, along with its unmatched track record of exceptional performance, has enabled the company to establish a competitive advantage well recognized by its customersFounded in 1997, with concentrated focus on delivering unique and customized training to the special operations community, Xe has grown quickly over the past ten years, while significantly diversifying its service offering, to become the premier provider of stability services and training through innovation, delivery efficiency and strong mission accountability of all Xe team membersHeadquartered in Moyack, NC, Xe employs approximately 435 full-time and 135 part-time employeesThe vast majority of these employees are based in Moyock and directly support Xe’s training effortsXe also utilizes approximately 700 U.S. independent contractors as trainers and security professionals for overseas contract execution
12 Formula One Investment Circuit of the AmericasCircuit of the Americas will be a world-class destination for performance, education and businessIt will be the first purpose-built Grand Prix facility in the United States designed for any and all classes of racing, from motor power to human power, and be the U.S. home to both the Formula 1 and MotoGP Grand Prix World ChampionshipsThe Circuit of the Americas master plan features a variety of permanent structures designed for business, education, entertainment and race useIts signature element will be a 3.4-mile circuit track with capacity for 120,000 fansOther support buildings will include a medical trauma and care training facility, 14 executive meeting suites, a conference center, a banquet hall as well as an expansive outdoor live music spaceFuture proposed amenities include a driving/riding experience, a motorsports driving club, kart track, grand plaza event center and tower, and a trackside recreational vehicle parkCircuit of The Americas is ideally situated on a 1000-acre site in southeast Austin, approximately two miles from Austin Bergstrom International Airport, with scenic views of downtownIn 2010, the Texas Comptroller’s office estimated that an Austin F1 United States Grand Prix race could generate a total economic impact approaching $300 million annually in Central Texas
13 Other Portfolio Companies Commerce Capital Partners San Antonio, TXDatavision Resources Carlisle, IADigital Blue Atlanta, GADulce Vida Spirits Austin, TXEmergent Technologies, Inc. Austin, TXGenteral LED San Antonio, TXMedia Excel Austin, TXMPOWER Ventures Austin, TXPatton Medical Devices Austin, TXQT Technologies Dallas, TXSan Jacinto Partners Dallas, TXThe Lynd Company San Antonio, TXTouchTunes Interactive Networks New York, NYW Capital Partners Austin, TXHal Jones Development Austin, TXNRC GroupShoutz Inc. Austin, TXNRC Group, LLC San Antonio, TX
14 Corporate Growth and Development McCombs Partners has a strong track record of working closely with our partner companies to optimize growth and unlock long-term valueWhile McCombs Partners invests in a range of different industries, we look for businesses with a common set of characteristics:Scalable business modelsFavorable industry dynamicsPricing powerHigh gross marginStrong free cash flow generationStable regulatory environmentLocated in a well-educated country with a competent and receptive work forceSufficient natural resources and infrastructure to sustain business growthAccess to water, roads, telecommunications, IT, etc.