Miles Reynolds

Core Philosophy and Institutional Culture at Loop Capital

• Entrepreneurial Spirit: The environment at Loop Capital is characterized as intensely entrepreneurial, described using the metaphor of a "real eat what you kill type of environment." Success is predicated on individual initiative and result-driven performance.
• Management Style of the Founder (Jim Reynolds):
  • Autonomy: Leadership discourages micromanagement. Employees have the flexibility to manage their own schedules (e.g., leaving for meetings at $11:00\,AM$ and returning at $3:00\,PM$).
  • Result Accountability: While there is freedom relative to physical presence, results are mandatory. The speaker explicitly states, "the results have to be there… else you're probably not gonna be here long."
  • Support for External Opportunities: The firm prioritizes the individual's future over the institution's retention. If an opportunity arises outside of Loop that is a better fit for a person's future, leadership will help them pursue it, even if they are a top performer.

Educational and Athletic Background of Miles Reynolds

• High School (Whitney Young High School):
  • Miles attended Whitney Young in Chicago, which he describes as a "powerhouse."
  • Team Motto: The team's ethos was defined by the phrase: "Kick ass, take names last."
  • Accolades: The team was a two-time or three-time city champion, state champion, and ranked as the $Number\,1$ team in the country by MaxPreps.
  • Nike Sponsorship: As a Nike Elite school, players received exclusive gear, including bronze sneakers limited to $500$ pairs globally.
• High-Profile Teammates:
  • Jahlil Okafor: Number $1$ player in the country.
  • Cliff Alexander: Number $2$ player in the country.
  • Jaylen Brunson: Starting guard alongside Miles (currently in the NBA as of the timeline discussed).
• Recruitment: Miles was a Top $100$ player in the country and held $25$ scholarship offers entering his senior year.

Professional Basketball Network and Relationships

• Devin Booker:
  • Met at the Nike Elite $100$ camp in Saint Louis during a roll call line.
  • They became roommates during the camp and remained close on the AAU (Amateur Athletic Union) circuit.
  • Booker stayed with Miles and his family for two weeks in Chicago during the McDonald's All-American Game and the Jordan Brand Classic in high school.
• Tyler Ulis (T.U.):
  • Played at Kentucky; described as one of the best point guards from the Chicago/Ohio area.
  • Accolades include SEC Player of the Year and Defensive Player of the Year.
• D’Angelo Russell (D-Lo):
  • Met at the Pangos $8^{th}$ Grade All-American Camp.
  • Miles highlights Russell's early talent with his left hand and his "smooth as butter" playstyle.
  • Later mentored by Kobe Bryant and Jordan Clarkson while on the Lakers.

Collegiate Basketball Career and Transfer History

• Saint Louis University (SLU): Miles began his freshman year here, eventually earning a starting spot by the second semester through a rigorous training schedule (working out at $7:00\,AM$ and staying until $11:00\,PM$).
• University of the Pacific:
  • Transferred to Pacific in the Bay Area (Summer $2016$) and had to redshirt for a year.
  • Played in the West Coast Conference against schools like Gonzaga, Saint Mary’s, and BYU.
  • Coached by Portland Trailblazers legend Damon Stoudamire.
  • Averaged approximately $15$ points and $4$ assists in $25\,minutes$ per game off the bench.
• University of Oklahoma (OU):
  • Joined as a grad transfer to replace minutes left by Trae Young.
  • Recruited by Hall of Fame coach Lon Kruger.
  • Played with Austin Reeves (nicknamed "White Kobe").
  • The team made the Sweet $16$, eventually losing to Virginia.

Professional Basketball Stint and Injury

• NBA Draft Process: After OU, Miles had workouts with the Chicago Bulls and the Milwaukee Bucks.
• G League:
  • Miles played his way into the G League Elite Combine and was drafted with the $24^{th}$ pick in the first round of the G League Draft by the Long Island Nets.
  • Devin Booker facilitated a trade to the Northern Arizona Suns (Phoenix Suns affiliate) so Miles could be closer to home.
• Career-Ending Injury: In his first G League game against the South Bay Lakers, Miles hit a three-pointer and then tore his hamstring while running the lane. He describes the sensation as the hamstring feeling "like a brisket… off the bone." Because he was on a straight contract (not a two-way), the team waived him immediately.

Investment Case Study: Coco5 (Coconut Water)

• Origin: Miles' father was the original angel investor, providing a check for three-quarters of a million dollars ($750,000$).
• Acquisition: During COVID-19, the brand stalled. Miles advised his father to "double up" and buy out the previous owners. They cut a $3,000,000$ check to acquire $70\%$ to $75\%$ of the company.
• High-Profile Investor Group: The majority owners now include Miles, Jim Reynolds, Derrick Rose, Charles Barkley, D’Angelo Russell, and Mike Wilbon (ESPN).
• Strategic Relocation: Moved headquarters from Chicago to Arizona to leverage Devin Booker as the face of the brand.
• Go-to-Market Strategy (Athlete "Cheat Codes"):
  • Sprouts: Used a meeting with the CEO (Jack) and Devin Booker to secure a nationwide deal covering over $300$ doors.
  • Fry's (Kroger): Secured placement in $120$ stores across Arizona.
  • Target: Leveraged D’Angelo Russell's presence in Minnesota (Target HQ).
  • Chicago Market: Utilized Derrick Rose for billboards and placement in Jewel-Osco, Mariano's, and Whole Foods.
• Viral Marketing: D’Angelo Russell famously defended the product on an NBA podium against Gatorade representatives, which went viral on ESPN.

Institutional Partnership: American Cancer Society (ACS)

• Partnership: After a year-long due diligence process, Coco5 became the "Official Hydration of the American Cancer Society."
• Significance: This is the first time the ACS has partnered with a beverage of this type. It required complete alignment with the drink's ingredients and the ethics of the investor group.
• Strategic Value: This partnership opens doors into hospitals and the broader healthcare sector.

Secondary Investment: P448 (Footwear)

• Product: An Italian-manufactured luxury shoe company.
• Quality vs. Price: The shoes use high-end materials like suede and nubuck leather, comparable to brands costing $800$ to $900$, but retail for approximately $275$.
• Strategic Marketing in Europe: Miles is using his relationship with Kendrick Nunn (playing for Panathinaikos in Greece) to penetrate the European market. They are developing a "one-of-one" shoe with royalties and pop-up activations in Greece.

International Sports Experience: The Serbian Derby

• Context: Miles visited Serbia to see a friend play in the rivalry game between Partisan and Red Star.
• Environment: He describes it as a "riot" atmosphere with fans filling the arena two hours early, spitting on players, and throwing firecrackers. He paid guards $400$ total to escort and protect him.
• Incident: A firecracker exploded under a seat near him, which he described as one of the loudest explosions he had ever heard, comparing it to a combat zone.

Loop Wealth Strategy and Financial Literacy

• Motivation: Miles noticed his professional athlete friends were receiving $8$-figure checks but lacked trust in financial advisors. He wanted to provide a "home-based" solution within Loop Capital.
• Loop University: A mandatory financial education platform Miles created for his clients. They must complete modules on finance to work with him. He emphasizes: "We're not gonna work with you… [if you don't] have some stake in it."
• Consultative Approach: He focuses on "retention" over earnings. He advises athletes against "dead investments" like luxury car maintenance or "bust down" watches that lose value, suggesting "Plain Jane" Rolexes or factory-set pieces that appreciate.
• Exit Strategy: For Coco5, the goal is a strategic exit at a multiple of at least $7 \times$ top-line revenue. By $2027$, they project reaching $50,000,000$ in revenue, targeting a valuation between $350,000,000$ and $450,000,000$.

Questions & Discussion

• Question (Audience): Regarding the D'Angelo Russell podium incident, is that because Gatorade is the official sponsor of the NBA?
  • Response: Yes, that is exactly why they tried to snatch the bottle. It went viral because he insisted it was his partner. He is a "whole character."
• Question (Audience): Where do you see yourself in $10$ years?
  • Response: Miles aims to stay within Loop Wealth, ideally having a couple of successful company exits (like Coco5) under his belt to "officially take money out of the equation."
• Collaboration Ideas (Audience): Mention of connecting with the US Women's National Team (Jaden Shaw) ahead of the World Cup.
  • Response: Miles highly encourages this, noting that $60\%$ to $65\%$ of Coco5 consumers are women.
• AI Integration (Audience): A student mentioned creating a one-for-one wealth management tool using applied AI sciences.
  • Response: Miles encourages them to keep learning AI: "Now is the time to really separate yourselves," and emphasizes that "dependency is the second worst drug in America."