I want to thank my good friend Andy for putting this conference together,â Steve Wynn told the packed ballroom at the Encore Hotel. âThese are very tough times. And it takes a lot of courage for him and his team to be out hereâin Las Vegasâputting on this magnificent event.â
The crowd erupted in applause. But I was distracted. My body tensed up as I looked over at my business partner.
âDid Steve Wynn just call me Andy?â I asked with a plastered smile on my face.
âAndrew,â he paused pensively. âAndrew, on behalf of Las Vegas, I want to thank you.â
More applause.
Yup, he definitely got my name wrong. In front of 500 people. A group that included industry thought leaders, hedge fund billionaires, prominent investors, and friends. People whoâuntil that momentâknew me as Anthony Scaramucci. Maybe the Mooch. Certainly not Andy; and, never as Andrew.
But, it didnât matter. After all, at that very moment I was witnessing what could only be considered a minor miracle.
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It was May 2009. Steve Wynn had just made the opening remarks at the inaugural SkyBridge Alternatives (SALT) Conference. His newly opened Encore hotel was opulent, filled with celebrity restaurants, gorgeous bars, and an abundance of fiery-red gaming tables, all of which stood empty as the Great Recession wreaked havoc on Americaâs adult playground.
If you told me that just two months earlier I would be standing in Las Vegas, listening to Steve Wynn speak to 500 members of the alternative investment industry about my firmâs courageous audacity to host an event during an economic crisis, I would have said you were nuts.
Flashback to March 2009. The Standard & Poorâs (S&P) 500 had hit rock bottom. The world, it seemed, was on the verge of collapse. And, I feared that my investment firmâSkyBridge Capitalâwould soon be among the casualties. I founded SkyBridgeâan alternative investment management company, focused on seeding and partnering with emerging managers and mentoring Wall Streetâs next generation of Wall Streetâs entrepreneursâin 2005. And now, just four years later, I feared it I was going to lose my businessâand worse, my clientsâ money. As redemptions starting flooding in, I knew that if we didnât do something proactive, something aggressive, something strategic, we werenât going to be SkyBridgeâwe were going to be âNoBridge.â I was beginning to feel hopeless as my partners and I faced an all-but-certain death. I wasnât sure if SkyBridge was going to survive.
I was scared. Actually, I was terrified. But I was not panicked. Panic is a different emotion. Panic implies that there is no rational thought taking place. That we are frozen and incapable of adjusting. Powerless to logic, and subject to seemingly unthinkable behavior.
Amid the chaos, my business partner Victor Oviedo came to me with an idea. He explained that a business acquaintance was running an alternative investing summit in Las Vegas and was struggling to fill seats. In addition, he continued, many major financial institutions were scrambling to cancel their upcoming conferences and Vegas-related business travel after President Obama sounded the warning bells on Wall Street and corporate America, saying, âYou canât take a trip to Las Vegas or go down to the Super Bowl on the taxpayerâs dime.â Against this seemingly dire backdrop, Victor had a plan.
âWhat if SkyBridge threw a hedge fund conference in Vegas?â he suggested.
I smirked . . . thinking he was joking. But, by the look on his face, I could tell he was serious.
He excitedly continued, âWeâll call it the SkyBridge Alternatives Conference, or âSALT.ââ
Victor is an extremely creative and strategic person. He sees around corners and anticipates trends before other people do. Heâs also one of the most deliberate people I know . . . and I mean that in a good way. He doesnât open his mouth unless he has something important to say. He doesnât throw things to the wall to see what sticks; rather, he is thoughtful and measured in his approach to business. With that in mind, I thought it was rather strange thatâas our business was failingâhe would come to me pitching the idea of a glorified party in Sin City.
I continued to look at him in utter disbelief. A conference? In Vegas? During an economic crisis? What would our clients say? After all, we were in the seeding business; not the conference business. Besides, we could barely make payroll and were maybe two phone calls away from closing up shopâhow were we going to finance a conference? The ideaâeven to meâwas outlandish . . . bizarre . . . crazy! Or was it?
âCome on, Vic,â I said. But as the words fell out of my mouth, I knew we were on to something. This was the time to take a calculated risk. This was the time to ignore political rhetoric and bring together members of the financial community to identify solutions that would allow us all to capitalize on tomorrowâs opportunities. This was the time to dive in with both feet and hopâactually, leapâover the rabbit hole. Suddenly, Victorâs idea was beginning to make sense. If fact, the contrarian in me suddenly found it brilliant!
If we didnât change the way we were doing business, we wouldnât even have a business. We needed to think outside the box. We needed to be creative; adaptable; entrepreneurial. Reinvent ourselves. We needed to play offense, while the rest of the industry was playing defense. And while there was no tangible relationship between the conference business and the hedge fund business, I did, however, recognize the void in the marketplace as well as SkyBridgeâs need to move in another direction.
It was becoming more and more clear to meâthis conference would give SkyBridge the opportunity to send a message to our clients, our competitors, and the industry that we were hopeful about SkyBridgeâs future . . . that we were hopeful about Wall Streetâsâand Americaâsâfuture. Weâd be instilling confidence, optimism, and perseveranceâsomething no government official, policymaker, or central bank was willing to do in 2009. We would be sending a message that we may have encountered a roadblock, but we were going to come together to overcome it. And as a firm, SkyBridge would be leading this charge.
As the founder of SkyBridge, I also saw SALT as a huge asset to help us growâactually, saveâour business. If we were going to survive the Great Recession, the only way to get the message out was to operate on the balls of our feet, not our heels. Call it âfake it âtil you make it.â Call it âsmoke and mirrors.â Call it whatever you want. The message was clearâwe were not going down without a fight.
Having worked in the industry for 20+ years, I also knew that Wall Street was all about building trust, goodwill, and relationships. And I knew that there was no better way to develop meaningful relationships than by taking the time to meet prospective and existing clients face-to-face. As such, I firmly believed that SALT would introduce SkyBridge to a critical mass of potential investors and peer managers. Furthermore, it would be an opportunity to raise our profile and separate us from our peers. In my mind, SALT had morphed from a nonsensical idea to a no-brainer. A strategy to save our business. But, now I had to convince my partners.
â â â
Two months before the proposed first annual SALT Conference, I gathered my partners together in our oversized conference room so I could present the idea.
âGentlemen,â I said as we began the partnerâs meeting. âWe have an opportunity in front of us. An opportunity to start a conference. The SkyBridge Alternatives Conference. SALT. It will serve as an industry platform. One that will introduce us to a ton of potential investors, while raising the profile of SkyBridge Capital.â
Silence.
Absolute silence.
âBesides, what is the worst that can happen?â I continued, hoping to inject some levity in the room, âAt least we will have a going-out-of-business party.â
As expected, my other partners did not exactly share my enthusiasm. In fact, they thought Victor and I were completely crazy. Our business was on life support. And this event would cost money that we didnât need to spend. They pleaded: âHow is this glorified going-away party going to contribute to our bottom-line?â âWhat would investors say?â âBesides, do we even know how to put together a conference . . . and in less than two months?â But the more my team kept telling me it was too risky, the more the contrarian in me believed in its promise.
Well, as you can imagine, the vote was five against twoâand I bet you can guess the culprits of those two lone votes. There we had it. No conference. No Las Vegas. And, perhaps, no SkyBridge.
I am a team player. I believe in consensus. I believe in a democratic corporate practice, where checks and balances are in place in order to ensure that my partners and I are collectively reaching our business objectives and responsibly propelling the organization while serving the needs of our clients. But, at that moment in time, the stakes were just too high. Our businessâand, some would argue, the industryâwas on the brink of failure. Besides, I truly believed that the conference was the key to reinvigorating our businessâthat, and I maintained control through our corporate governance agreement.
âGentlemen, I hear your concerns.â I paused. âThank you for your vote. Weâre doing it anyway.â
(There was a famous cabinet vote during the Civil War where Lincoln called for the vote: â9 nays, 1 aye, the ayes have it.â Well, it sort of went like that. In times of distress, real leadership means making boldâsometimes unilateralâdecisions.)
And with that we started planning.
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Truth be told, we had less than two months to gather the relevant industry players, plan a comprehensive agenda, create a web site, and produce a unique event . . . something that would grab the marketâs attention. Perhaps more overwhelming was the fact that my lean team had never planned a conferenceâlet alone an eventâin their entire lives . . . and we still had our day jobs.
Remember, we were all in the financial services business; not the event-planning industry. What the hell did we know about throwing an event . . . let alone an entire conference! But one thing we all had in common was that we had all been to tons of conferences throughout our careers and understood the needs of the audience as weâourselvesâwere often in their seats. And so it hit usâwe knew that SALT needed to be a conference we would all want to attend. It couldnât be some run-of-the-mill event nor a vendor expo where there was an overabundance of service suppliers hounding asset managers and investors on their way to the bathroom. It needed to be a forum where professionals were exposed to relevant and insightful editorial content, while providing them with opportunities to build meaningful relationships that would help their businesses grow. We wanted the audience to be properly composed of check writers and asset managers, with the best and brightest from Wall Street, Washington, and beyond. In order to reach these objectives, we knew that we needed head-turning names at the top of the speaker docket.
My first call was to Bob Miller, the former governor of Nevada. Having known his son, Rossâwho was Nevadaâs secretary of state as well as a friend of the firmâI was put in touch with Governor Miller. It was a strategic first move, as I knew his support was integral in pulling off an event in the economically devastated state of Nevada. Furthermore, he was also on the board of Wynn Resorts, andâperhaps most importantlyâhe was closely acquainted with the man we hoped would be our keynote speaker at the first SALT Conference: Michael Milken.
Iâll admit it. I have a man crush on Michael Milken. The guy wasâand still isâa hero of mine. Often said to have ârevolutionized...