Here is the announcement from Concert Golf Partners.
HUNTINGDON VALLEY, Pa.
-- Philmont Country Club, the historic
member-owned private club here in the north Philadelphia suburbs, has completed
its recapitalization with Concert Golf Partners, the boutique owner-operator of
high-end private clubs. The deal was finalized Feb. 28; the transaction was
unanimously approved by the club's Board of Directors and approved by a 95%
vote of its members.
Bausch Collection of Philmont Course photos: (North Course)
recapitalization achieves everything we have been trying to do on our own for
the last 5 years," said Glenn Meyer, the long-time club president.
"We needed capital from our excess land for improvements, and we needed
professional management. We have accomplished both, thanks to our partnership
with Concert Golf."
The members did indeed see
all club debt paid off at closing. Their annual member dues will be frozen for
the next 2 years and more than $4 million of immediate capital projects have
been launched at the club, according to Concert Golf Partners CEO Peter Nanula. "And, best of all," Nanula
added, "We have provided Philmont members a
permanent guarantee of no more member assessments."
Originally founded as an
all-Jewish club in 1906, Philmont Country Club (www.philmontcc.org) is a 36-hole country club on 295 acres. Today
it also features two championship golf courses, 10 Har-Truª
tennis courts, an Olympic-size swimming pool and a 58,000-square-foot clubhouse
with a sizable ballroom. The Board had been in talks with the township,
developers and homebuilders for the last 5 years, seeking to sell 60 acres on
its South Course to enable development of 150 new homes -- to generate nearly
$10 million of capital for needed investments in the club
In what he called a clear
"win-win solution for the membership", President Meyer struck a
recapitalization deal with Concert Golf Partners (www.concertgolfpartners.com) to provide the same $10 million for his club
in two stages: the first $5 million immediately to pay off the club's debt and
fund urgent capital projects this year; the second $5 million when Concert Golf
completes the entitlements and sale process for the 60 acres.
Philmont CC knew it did not need all 36 holes, but the
process of unlocking the real estate value proved a challenge -- until the
Board met Concert Golf Partners.
often struggle to manage the long-term process of extracting value from their
excess real estate," said Nanula. "It
takes capital, it takes development expertise, and it is difficult to make
these decisions among 300-plus voting members. We can do it all more quickly
for the members with our own capital and a streamlined decision-making
Added Jordan Kendall, a Philmont Board member who, along with Meyer, led the club's
recapitalization with Concert Golf: "This partnership with Concert Golf
preserves Philmont for the long term, and ends the
era of funding capital projects with member assessments. We have a rich history
and top-notch North Course here at Philmont, and now
our club is debt-free and our future is brighter than ever."
discussions started when 90-year old Philmont member
David Fields, a former investment banker, called Concert Golf after reading an
article about other successful club recapitalizations. "I read an article
about other high-end private clubs getting a capital infusion from Concert
Golf, and so I reached out to them," Fields said. "From there,
the process was very straightforward."
Concert Golf Chairman
Peter Nanula announced that his team would
immediately undertake more than $4 million in new capital projects at Philmont CC, including extensive bunker renovations and
tree removal; new swimming pool upgrades; outdoor dining; new HVAC and
utilities infrastructure; and dramatically renovated mens
and women's locker room facilities.
CC is a great club with a top-rated golf course and a dedicated membership, but
it had too much real estate and not enough capital," Nanula
said. "All of these capital and real estate issues are now solved. No more
debt - we paid off all the debt last week. No more member assessments - we will
pay for and complete the Board's list of improvements much faster, at no cost
to the members. And we will spend over $1 million getting the real estate
entitled and sold to free up extra capital for reinvestment back into the club
Concert Golf Partners is a
boutique owner-operator of private clubs based in Newport Beach, Calif. Formed
by Nanula, the founder and CEO of Arnold Palmer Golf
Management (1993 to 2000), Concert Golf has amassed $150 million of patient,
long-term equity capital to invest in and upgrade large-scale private clubs
located in major metro areas. Concert Golf is unique in operating as an
all-cash buyer with a dedicated fund, which, Nanula
said, allows it to acquire or recapitalize clubs (without incurring debt) and
subsequently invest in these properties for the long term.
Concert Golf has acquired 15
such clubs nationally, including longtime member-owned clubs such as White
Manor CC in nearby Malvern, PA (www.whitemanorcc.com), Blue Hill CC in Boston (www.bluehillcc.com), and Crestview CC in Wichita (www.crestviewcc.com). Philmont CC members now
enjoy free reciprocal privileges at these and Concert Golf's other upscale
clubs, as well as access to more than 150 TPCª clubs and Pacific Links
International clubs worldwide.