By Peter Mastrantuono
Tiger 21 is a one of the best-known membership networks for high-net-worth individuals, whose mission is to help its members “preserve and grow their wealth by connecting into an unparalleled network of wealth creators and thought leaders.”
Founded in 1999 by Michael Sonnenfeldt, an entrepreneur, philanthropist, and political activist, Tiger 21 is an alternative to traditional advice providers. Instead of relying on a financial advisor in the conventional sense, it pools its considerable resources and influence to get first-hand insights from leading specialists and experts on a range of topics that may be of particular interest or relevance, from climate change investing and estate planning to investing in art and collectibles and preparing children for inherited wealth.
The cost of membership is $30,000 per year, which covers the costs of monthly peer-to-peer meetings, chapter meetings, all-member meetings and access to Tiger 21’s digital platform that connects members from around the world.
Among its networking benefits, members can learn how the collective membership is investing its wealth through a quarterly asset allocation report.
The club is not just about managing wealth. Members are equally interested in philanthropy and ways to translate wealth into personal fulfillment.
Tiger 21 does not manage members’ wealth, nor does it provide advice. It only seeks to empower its members to make better investment decisions. At times, the interactions among members will lead to members partnering in specific investment opportunities. While this occurs without the involvement of Tiger 21, members are required to report such relationships so other members may be informed of any potential conflicts.
Tiger 21 is Not Alone
There are other similar clubs for the high net worth set.
One of these is B Connect Club, which takes a different approach from Tiger 21 by offering its members luxury products and services, access to investments, education, and by inviting corporations and financial advisors to participate and network with other members.
Another is the Institute for Private Investors, which takes a more limited role in promoting education and networking for members, though it does offer a parallel membership for financial advisors who cater to high-net-worth investors.
The Family Office Exchange (FOX) represents yet another approach, in which a relationship manager is provided to help members solve problems and offer financial education and guidance, along with its peer networking opportunities.
Another player in this space is CCC Alliance. It aims to be a collaborative community of wealthy families who can share insights and opportunities, eschewing memberships of corporations, consultants and financial advisors.
While such clubs’ efforts to educate members and respect their privacy make them very attractive to the Top 1%, they are not a substitute for individual financial advice. Gaining from the experience and knowledge of another member is always valuable, but it cannot replace advice tailored to an individual’s unique set of circumstances and needs.
Peter Mastrantuono is a contributing writer to MyPerfectFinancialAdvisor, the premier matchmaker between investors and advisors. Peter worked for over 30 years in the wealth management industry, focusing on retirement planning, investing, asset allocation and financial planning.