Thanks to Trevor Gordon’s Sandlapper Companies, the Upstate’s investment community is all shook up
The walls in Trevor Gordon’s office are packed with artwork, mostly images of music legends. To him, Sinatra, Elvis, the Beatles and Kiss represent excellent brand managers. It’s a different way of thinking about something familiar, which is one way Gordon has grown his business, Sandlapper Companies, so quickly in recent years.
Sandlapper Companies comprises eight businesses, three of which are the core. The first is the brokerage firm Sandlapper Securities, which has 25 offices around the country. Sandlapper Capital Investments creates investment products, including building and managing saltwater disposal wells near oil and gas drilling operations. The third is Sandlapper Wealth, a fee-based advisory business.
Gordon’s company has won several recognitions for its fast growth, and he has been a significant player in the success of the national professional organization for alternative investments. In 2010 the company was just two people. Now the recent acquisition of Georgia-based Colony Park Financial Services makes the broker-dealer business alone about 76 strong.
“You can only grow organically for so long,” Gordon said. “You’ve got to be out there looking for the mergers and acquisitions activity and building that way.”
Gordon looks for growth opportunities that others overlook. At the same time, he said the company wants to fill in gaps closer to home. Sandlapper already throws a public concert to support local charities as part of its annual meeting, and Gordon said it’s time to sharpen its focus on local business as well.
Does the risk of using unconventional models always work out?
No! Our very first deal in the oil patch, we got hammered. We found an opportunity for a saltwater disposal well from a buyer who actually didn’t have clear title on it and went bankrupt. I followed him all the way to bankruptcy court. We recovered just over half the money we had put up, then we had to dig into our pockets and pay the other $118,000 to make our clients whole. It was a lesson learned.
How do you juggle such a diverse group of businesses?
As we get bigger it does become a little bit more difficult. So I have to surround myself with people I can trust and who can complete the mission and understand our vision. Early on my biggest struggle was with senior management. I have never had a problem building a great support staff, but I have to be a little more methodical in terms of who I’m going to allow into that inner circle.
You’re a Gulf War veteran. Do you see any similarities between investing and combat?
Absolutely. Tons. Everything has to be methodical. When you try to fly by the seat of your pants in combat, you’re going get shot, and the same is absolutely true in the investing world. I’m okay missing a deal because at the end of the day I need to understand what I’m buying, how it operates and how it’s going to create shareholder values.
Also, the structure that you need. I’m not dictatorial, but at the end of the day I have to be a decisive leader. For that you need the respect of your troops that aren’t going to question the command. [Similarly], if I tell my head of compliance to do something to avoid a regulatory problem, they’re going to execute. They might want to know why, but we can discuss that later. You’ve got to have the respect of your troops.
How do you gain that respect?
Listening to them, including them, and most importantly not marginalizing them. So if you came to me with an idea that was completely ridiculous and I just laughed in your face, you will not bring me another idea. And who knows what your next idea is?
What’s your take on the Upstate investment scene?
There is a tremendous amount of wealth in the Upstate and we’ve never tapped it. At first, I kept going back to California connections for investment dollars. When we decided to build and grow this business that I started in 2005 we knew that we needed to be part of this community. I’d like to see a Sandlapper office on every Main Street in the Upstate.
