When founding Beyorch — an investment firm with a name that's shorthand for "Beyond Rich" — in 2018, Dré Villeroy thought he was creating a traditional investment firm. He never imagined that it would pivot to being on the frontier of private equity in just a few short years.
Beyorch's strategy takes the usual approach to private equity and makes it uniquely simple. Instead of giving investors an equity share in exchange for capital, Villeroy purchases new businesses and offers investors an annual return. It ends up being a win-win. Beyorch maintains more control over its assets, and investors receive a fairly generous (and also very stable) return on their investments.
It's a smart plan that makes even major investments refreshingly straightforward. "We intake funds and then allocate money out, primarily buying companies," Villeroy explains. "All we're doing is raising capital through debt security notes and paying investors an interest yield of 8% a year. I decided to not have tiers anymore. I just want it simple, just 8% for everybody — whether you invest $25,000 or $25 million."
This approach has proven to be a draw for investors. In the last several years, low-risk investments with relatively high rates of return have become increasingly scarce. In an effort to make Beyorch stand out, Villeroy settled on that 8% annual return divided across four quarterly payments of 2%.
Most companies aren't able to offer that kind of guaranteed interest, but those businesses don't have Beyorch's business model. "Our market positioning is giving access to interest yields that most individuals who have disposable income just otherwise wouldn't have," he says. Those interest yields proved to be an instrumental part of Beyorch's quick climb to a billion-dollar valuation.
Private-equity traditionalists might be skeptical of this business model, but it's led to continued growth since the company's founding. "We have a billion-dollar valuation now," Villeroy points out, "because we have $10 billion in assets under management, but I own 100% still."
So how was Villeroy able to strategically guide the company through that kind of growth in such a short amount of time? Whether you're an individual investor or someone who's running an investment firm, pitching investor whales and diversity is a key part of any strong investment strategy. Beyorch is currently working to acquire businesses across multiple sectors, but it also focuses on geographical diversity.
"I just opened up a few offices around the world," Villeroy says. "I've been addressing London, Singapore, and New York outside of here in Los Angeles." It might seem to be more challenging to acquire multiple types of businesses on a global scale. However, that kind of spread-out approach can help minimize the impact of region- or sector-specific issues on the company itself, such as natural disasters and strikes.
Villeroy acquires numerous kinds of businesses in many places, but that doesn't mean he isn't careful about choosing which new companies to purchase. "We have the human impact in mind for every company we're investing in," he explains. "Money is being invested in companies and through our ESG protocols."
Those environmental, social, and governance protocols are at the heart of Villeroy's vision for Beyorch. When Villeroy acquires a business, he isn't just making an investment, he's also granting a cash infusion that will grow the company and further its mission. That's why he takes the time to verify that each company has a purpose worth supporting before making a purchase.
"We want to make sure that they're doing something positive for the environment, work culture, or humanity," he says. "Every dollar that our clients are spending is going to a sustainable future."
"Let me give you an example," he continues. "Many major electric vehicle companies would fall under our investment criteria under ESG because their mission involves transitioning the world into sustainable energy. That impacts Earth. That affects everyone. Humanity in itself is hard-cutting down on carbon dioxide. So we want to enter investments where they actually have a bigger cause."
Villeroy's focus on investing with a cause dovetails beautifully with the growing influence of socially responsible investing. Investors are increasingly "voting" with their dollars, preferring to support businesses that are actively working to better the world. In many areas of the market, socially conscious consumers are following suit.
Villeroy started Beyorch to build wealth while making a difference — and he invites all investors and would-be investors to do the same. "We want to enter investments where they actually have a bigger cause," he says. "We're not just looking to make easy money."
