The conference is scheduled for Oct. 1-3, at the Wynn Hotel in Las Vegas.
According to Koenig, the adult industry is an emergent market that is inaccessible to traditional investors due to lack of familiarity with adult products and also because of mainstream reluctance to be associated with the adult industry.
“Our goal for the conference is to educate the financial industry on effective investment strategies for the adult entertainment industry,” Koenig said. “We will explore the inefficiencies and unique circumstances that exist solely in the adult entertainment market, how institutional investors can use these factors to their advantage, and how to identify and capitalize on opportunities in the market. I’m confident even the most conservative investors will be ready to take a very close look at this market, once they understand its vast potential.”
On the other side of the investment coin, small to mid-level adult companies that could benefit from outside investors often lack the financial know-how to access various institutional investment possibilities.
“There are a plethora of profitable adult entertainment businesses waiting to be acquired and a limited number of qualified buyers,” Koenig said. “You would think that there would be a long list of buyers lined up to purchase a company that consistently produces 20, 30, 40 or even 50 percent profit margin, but there aren't. Not in adult. Institutional buyers traditionally stay away from this market.”
“And because traditional means of financing are not available for most privately held adult companies, business owners who run profitable businesses and want to take cash off the table or retire have nowhere to turn. They are trying to sell into a market where there are no buyers. This lack of buyers is what makes this market so attractive to private equity investors and hedge fund managers looking to invest in undervalued companies, but so far only a few have caught on,” he said.
Opal Financial Group coordinates events for institutional investors including executives in corporate pension funds, endowments, public funds, family offices, foundations, Taft-Hartley funds, financial planners, 401(k) plans, investment consultants, broker/dealers, rating agencies, lawyers, accountants and high-net-worth individuals.
The Las Vegas summit also will cover topics including private equity portfolio theory, fund of funds, private equity buyouts in emerging markets, real estate opportunities and pitfalls, fixed income alternative investments and international investing.
“We have got our work cut out for us,” Koenig said. “When you are the first one out there working to create a market, you have the challenge of bringing the buyers and sellers together at the same time. The most difficult challenge for investors is getting to the information.”
AdultVest is an executive sponsor for the summit.
