Kreamer Rooke is an eighth-generation family member of the Dickinson Group, a Charleston, W.Va.-based family office where he also serves on the investment committee. He is also the founder and a managing partner at Station Partners, a private investment firm. He talks about the tactics the Dickinson Group is using to promote engagement among its growing number of family members after so many generations:
Where do direct investments fit into the big picture of your investments?
Historically, our alternative investment allocation had largely included managed private equity and credit in line with investment policies; however, over the last decade or so, we have made a conscious decision to expand that allocation to direct deals that meet specific criteria.
How do you engage with the family regarding the direct investments?
Starting around 2019, the investment committee decided to host an inaugural investment-centric meeting, including not just direct beneficiaries but the next generation as well. This meeting is designed to be entirely focused on our investment activity and the process that the committee employs. It’s also not meant to be too formal, but rather promote questions and discussions for those that do not have an investment background. We’ll get questions like, ‘Why don’t we own any bitcoin? Cannabis? Tesla?’
The meeting format includes the ho-hum market updates, and our advisors will typically bring in different political or economic speakers. We will also invite three or four managers from within the portfolio: for example, a real estate sponsor, fund manager or management team from one of our direct investments.
One year, I actually put on a breakout session where we worked through, over the course of a couple hours, a sample direct investment process, discussing such topics as how we would value the company, due diligence items and deal structure. It was meant to engage the audience and explain the what, why and how of a sample deal.
How has this gathering been received, and what makes it work well?
I think it has been reasonably well attended, and the feedback has been good. Coming out of the pandemic, more family started participating virtually, so going forward we are planning to continue to host in person every other year.
I think — or at least it’s our hope — that seeing the folks who are responsible for running/managing these companies in the flesh helps to build engagement, having the opportunity to spend some time with them to perhaps understand why the business has grown, what the challenges are. It’s one thing to be handed a document that shows investment returns, but hearing it firsthand makes it more tangible for the participant.
Do you have a geographical focus for your investments, and does that connect to the family?
I think it would be imprudent to say that we’re only going to invest in West Virginia; however, there is definitely a sense of responsibility amongst the board and family to continue to dedicate resources in our home state of West Virginia, beyond just philanthropic causes.
In fact, a group from the younger generations is involved in an angel investing project that funds opportunities sourced throughout Appalachia. I think this is another great engagement tool as it’s a way to invest in our community and create a sense of investment accountability for family members that otherwise would not be involved.
How does direct investing fit into your broader strategy for keeping the family together into the eighth generation?
We’re thinking about the portfolio not just as an income-generating entity but as a source of long-term value.
The investment meetings are an opportunity for those with the interest to meet with relatives that they might not know (there’s a lot of us!) and better understand their family history. This is also a significant philosophical pivot from when I was growing up or, honestly, 10 or 15 years ago, when there wasn’t much networking amongst the later generations.
Today, we encourage questions. We encourage people to come into town and meet with us. The family history in Charleston is pretty cool once you learn about it, and using the investments and these meetings as the rally point to bring folks together — with the ability to ask questions, understand what we’re doing and why — seems to have generated some interest.
Has your work on the family’s investments given you a new perspective on the family?
It certainly has. It’s given me an opportunity to build great relationships with relatives that I might otherwise not have — relationships that I truly value today.
I didn’t grow up in Charleston, W.Va., but because of my work with the family it’s really become a hometown — a tie to my roots.
But it’s also important to me that the board, investment committee and shareholders feel that my contributions are in furtherance of our mission; that my professional expertise and experiences can help build value. This may be different than my fellow eighth-gens who have different backgrounds. I think that the takeaway here is that the family is trying to encourage engagement at many levels, regardless of background, and we are open to ideas on how to accomplish this goal.
I think it’s wise to engage the generations that might not be getting distributions for 40 years or longer. Many of them have the experience to serve. I’m still an indirect beneficiary, for example — my parents are still alive.
How has your family achieved multigenerational involvement in the family office?
The ability to keep these generations together is truly remarkable, and I give much of the credit to our leadership, board and the elder generations who have prioritized this objective.
It’s not an easy task. A lot of time is spent on engagement — making people understand what we’re doing, why and where it came from, because I think that knowledge gets diluted with each generation.
Again, I give the credit to my relatives who have built and prioritized this culture of engagement.