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Private equity executive talks diversifying and Houston's investment ecosystem

Taseer Badar is in the business of making money. Courtesy of ZT Corporate

It's Taseer Badar's job to keep 1,000 investors happy. As CEO and founder of ZT Corporate, that's just a day in the life for him.

Badar has been in the business for over 20 years, and before that, he was on Wall Street as a financial adviser for Morgan Stanley. He realized the dollar went further in his hometown of Houston, so he came back. He started advising on business plans for people he knew, and earned a lot of loyalty from these early entrepreneurs, and grew ZT from there. He found his way into health care, which made up a good majority of his holdings, until about four years ago when he diversified his company and got into the automotive industry.

Last year, the company celebrated its largest exit — Altus Infusion — and acquisition — six Neighbors ER clinics. He created a nonprofit foundation —The Altus Foundation — and raised over $1 million for assistance for underserved families. Over the past 20 years, Badar grew his company from $28 million in revenue to over $600 million — with no end in sight.

Badar spoke with InnovationMap about his career, the health care industry, and what its like to be in private equity in Houston.

InnovationMap: You've recently diversified to include a startup in your portfolio. Tell me about that company.

Taseer Badar: We have group called Accountable Care as an entity, which we are sustaining analytics. It's the opposite of a fee for service business. It used to be that if a patient got sick, we treat you. Now, it's preventive care. We have a pilot of around 40,000 patients right now. It has a lot of potential and it keeps people healthier. How it works is insurance companies pay you to keep their consumer healthy. Let's say an insurance company pays us $100, and we treat them for $85 and keep the rest for our investors.

IM: How does Houston’s investment ecosystem compare to other cities you work in?

TB: For me, it was really hard to move into that. I am very traditional. We're not a risk-based company; we're very risk averse. For me, this fit into our business. It fell in my lap. I do think generally it's a conservative ecosystem, in my opinion. We're not San Francisco — we're not built like that. Not saying no one does it. I was in New York, and those are the guys who understand [venture capital]. In Houston, we understand oil and gas, and we understand medical and real estate. I think we're way off for the startup [investment] here.

IM: With that being said, what is your advice for tech startups seeking capital, then?

TB: Investors in Houston want positive earnings before interest, tax, and amortization. But that doesn't mean it's not possible in New York, Dallas, Austin, or other cities. There are technology conferences everywhere, that's a great way to get known as a startup.

IM: How have you seen the health care industry evolve?

TB: Texas is a state that has a lot of doctors that are entrepreneurial. I personally feel as though that a lot of the Obamacare, and the accountable care, a lot of practices have been bought by hospitals, so you don't see a lot of freestanding medical practices as much as I used to. At the same time, a lot of the younger doctors aren't as business oriented and want more work-life balance. Because there's less of them, there are opportunities for companies like mine to take care of them. When I started, Altus was one of 50 companies of its kind. Now, we are one of two or three standing in Houston with that type of model.

IM: What are the challenges of managing investors?

TB: We have a lot of retail investors. They are great, and it's much more relation based. But, at the same time, a very high-touch business. That requires a lot of time and effort in a relationship. It's a lot more managing of the process.

IM: What do you look for in an investor?

TB: We look for investors that are accredited investors, and we want someone who understands there's a time horizon, who are looking for an income and an exit play between three and seven years. Someone who understands risk and that it's not buying a stock that can be liquidated.

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Portions of this interview have been edited.

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Building Houston

 
 

Four climatetech-focused individuals have been named to Greentown Lab's board. Photo via greentownlabs.com

Greentown Labs, a Massachusetts-based climatetech startup incubator with its secondary location in Houston, has appointed four new board members.

Of the new appointees, two community board members have been named in order to act as liaisons between startups and Greentown Labs. Greentown Houston's appointed representation is Nisha Desai, founder and CEO of Intention, and community member. The other new board members are Gilda A. Barabino, president of Olin College of Engineering and professor of biomedical and chemical engineering; Nidhi Thakar, senior director of resource and regulatory strategy and external engagement for Portland General Electric; and Leah Ellis, co-founder and CEO of Sublime Systems, who is the Sommerville location's community board member).

"It is important for a startup incubator to have leadership and insight from stakeholders including the public and private sector, academic and university communities," says Greentown Labs CEO Dr. Emily Reichert in a news release. "These leaders bring a wealth of knowledge relevant to not only climatetech but to our continued growth as an organization. Their voices will be important to have at the table as Greentown charts its course for the next decade of climate action."

Desai's current startup, Intention, is climate impact platform for retail investors, and she has previously worked at six energy-related startups including Ridge Energy Storage, Tessera Solar, and ActualSun, where she was co-founder and CEO. She's also worked in a leadership role at NRG Energy and spent several years as a management consultant with the energy practice of Booz Allen Hamilton — now Strategy&, a PWC company.

"I'm honored to join the board of Greentown Labs as a representative of the startup community," she says in the release. "This is a pivotal time for climate and energy transition. I look forward to working with the rest of the board to expand the collective impact of the Greentown Labs ecosystem."

The four new appointees join seven existing board members:

  • Alicia Barton, CEO of FirstLight Power (Board Chair)
  • Katherine Hamilton, Chair of 38 North Solutions
  • Dawn James, Director of US Sustainability Strategy and Environmental Science at Microsoft
  • Matthew Nordan, Co-Founder and Managing Director of Prime Impact Fund and General Partner at Azolla Ventures
  • Kathleen Theoharides, Secretary of Energy and Environmental Affairs, Commonwealth of Massachusetts
  • Mitch Tyson, Principal at Tyson Associates and Co-Founder of the Northeast Clean Energy Council
  • Dr. Emily Reichert, CEO of Greentown Labs

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