Philip Schwalb has finally pulled off the financing for a for-profit National Sports Museum to be built four blocks from the World Trade Center site.
The seed capital came from his life savings and credit card debt, he said. But Mr. Schwalb, now chief executive officer of the museum, eventually secured $52 million in Liberty bonds from the city and state of New York in August. And in October, the National Sports Museum Management LLC will issue a $28 million private placement including 140 units at $200,000 each, targeted at private equity funds and high-net-worth individuals; the expected return is 25% to 35%, according to Sameer Ahuj, chief financial officer of museum.
Before Mr. Schwalb's savings ran out, some 35 people — now owners of the museum — put in the $3 million in working capital that carried the project until it was promised bond financing, he said. They include Rob Kapito, vice chairman and founder of BlackRock Inc., and Al Bernikow, retired deputy chief executive officer of Deloitte & Touche LLP.